Agenda item - Council Tax Reduction Review

Extract from the proceedings of the Policy, Resources & Growth Committee meeting held on the 8^th December 2016, (to be circulated); together with a report of the Executive Director for Finance & Resources (copies attached).

51.1      Councillor Hamilton introduced the report which detailed the outcome of a review of the Council Tax Reduction (CTR) scheme for 2017/18 as required by legislation.  He noted that in the current financial year the council was absorbing approximately £2.468m of the scheme costs within the General Fund.  He also stated that he wished to move an amendment to the recommendations of the Policy, Resources & Growth Committee which were detailed in the extract included with the addendum papers.  The amendment was intended to clarify the position for 2017/18 so that all claimants were treated equally.

51.2      Councillor Mitchell formally seconded the amendment.

51.3      Councillor Sykes stated that the Green Group had abstained from voting at the Policy, Resources & Growth Committee meeting, and he had hoped that the means to support those in need could be found.  However, as things stood he could not support the recommendations as a significant number of households remained affected.  He noted that there was a discretionary fund available and hoped that those affected would be directed to that.  He also felt that there was an increased risk of more people becoming homeless.

51.4      Councillor Wealls stated that it was a difficult decision and that the council needed to look at service pressures across the board and consider the best way forward.

51.5      Councillor Page stated that he was uncomfortable about the scheme, there were a number of people on low incomes who were really struggling and they needed support.  He was not sure that this was being provided.

51.6      Councillor Hamilton stated that the council was putting in £3.9m to help residents and that the amendment clarified the position for all claimants.

51.7      The Mayor noted that the recommendations of the Policy, Resources & Growth Committee as amended had been moved and put them to the vote was carried by 23 votes to 20 with 10 abstentions as detailed below:

51.8      RESOLVED:

(1)    That it be noted that the Council undertook formal consultation as a part of this review and that as part of the formal consultation a draft scheme was published and people were invited to give their views on that scheme;

(2)    That the outcome of that consultation (appendix 1) which has been summarised in section 5.4 of the report be noted;

(3)    That it be noted that an Equalities Impact Assessment (EIA) (appendix 2) has been undertaken on the proposed changes in the draft scheme and the recommendations in this report. It should further note that, to meet their Public Sector Equality Duty, Members must give conscientious consideration to the findings of this assessment when making a decision on the recommendations in 2.9.1 to 2.9.6 [5.1 – 5.6 below].  The actions which will be undertaken as a result of this EIA are set out in section 7.13;

(4)    That the Executive Director of Finance and Resources be authorised to amend the council’s Council Tax Reduction Scheme (Persons who are not Pensioners) (Brighton and Hove City Council) 2013 to reflect the changes at 2.9 to 2.9.6 of the report [5 - 5.6 below] and to take all steps necessary and incidental to the introduction of the revised scheme.

Proposed changes to scheme from 1^st April 2017

(5)    That the changes set out in 2.9.1 – 2.9.4 of the report [5.1 - 5.6 below] are made to the Council Tax Reduction Scheme (Persons who are not Pensioners) (Brighton & Hove City Council) 2013 to take effect from 1 April 2017. (These changes are set out in more detail in 4.3 of the report).

5.(1)     Change the taper rate from 20p to 25p.

5.(2)     To limit maximum CTR to the equivalent available for Band D property.

5.(3)     Change the minimum CTR payable to £5.00 per week.

5.(4)     Between 1^st April 2017 and 31^st March 2018 transitional protection will be applied so that no one will be worse off by more than £10 per week as a result of the provision in 2.9.2.  This transitional protection will be reviewed and consideration given whether to extend it beyond 31^st March 2018 when the CTR scheme is next reviewed in 2017.

5.(5)     As per the  four year budget plan previously agreed at February 2016 Budget Council   and presented  in the three year saving plan on this agenda  the  permanent budget funding  used to support the Discretionary Council Tax Reduction Scheme to be set at a  £0.055m for 2017/18. A further £0.095m will be set aside from the Welfare Reform reserve to provide £0.150m discretionary funds overall.

5.(6)     Amend the Discretionary Council Tax Reduction Scheme (Brighton & Hove City Council) 2016 so that people who would otherwise qualify for council tax reduction were it not for the provision in 2.9.3 [5.3 above] (£5.00 minimum CTR) can apply for Discretionary Council Tax Reduction.