Agenda item - Council Tax Reduction Scheme 2019

Extract from the proceedings of the Policy, Resources & Growth Committee meeting held on the 6^th December, 2018 (copy to follow); together with a report of the Executive Director for Finance & Resources (copy attached).

47.1      Councillor Hamilton introduced the report and stated that he was pleased to confirm that the council would maintain its 40% contribution towards the discretionary council tax reduction fund, despite overall reductions in government funding.  He believed it was important to retain the £2 admin cost and noted that this had been part of the consultation process and had been accepted.  He therefore moved the recommendations as outlined in the extract from the Policy, Resources & Growth committee.

47.2      Councillor Sykes moved an amendment on behalf of the Green Group which sought to enable the most vulnerable people to benefit directly by having an additional £2 to spend.  He noted that year on year the burden on claimants was reducing and therefore the proposed changes would be viable as part of the overall scheme.

47.3      Councillor Gibson formally seconded the amendment and reserved his right to speak in the debate.

47.4      Councillor Daniel stated that she appreciated the spirit of the amendment but felt that there was a need to look at the budget overall and consider the benefits and the impact of welfare changes on everyone affected.  It would be better to have funding to meet discretionary elements rather than seek to use administrative costs to do so.

47.5      Councillor Janio stated that the country had a highly productive economy and the introduction of universal credit had helped to improve the incentive to work.  There had been difficulties with the implementation of the scheme but overall it would lessen the impact on claimants.  The proposed amendment would see an increase in costs and therefore he could not support it.

47.6      Councillor Page stated that enabling claimants to have an additional £2 in their pocket had to be a benefit and therefore the amendment should be supported.  The discretionary fund was only helpful if people were aware of it.

47.7      Councillor Gibson stated that the difficulty was that the council was being asked to decide on the council tax reduction scheme ahead of any decisions on the budget in February.  He believed the consultation had been limited and this added to the difficulty in making any changes to the overall scheme but if the council was minded to it could accept the amendment and make changes to the discretionary fund.

47.8      Councillor Hamilton noted the comments and stated that he could not accept the amendment as it could result in an increase in the number of transactions to be dealt with.  There had been an opportunity to discuss any changes to the scheme and the need to reduce the level of administrative costs had been recognised and taken to account.  The amendment would result in increased costs and he could not support that.

47.9      The Mayor noted that the amendment had not been accepted and therefore put it to the vote which was lost by 10 votes to 19 with 19 abstentions.

47.10   The Mayor then put the recommendations as listed in the extract from the Policy, Resources & Growth Committee held on the 6^th December to the vote which was carried unanimously.

47.11   RESOLVED:

(1)       That the revised Council Tax Reduction Scheme incorporating the changes in paragraphs 3.8 to 3.12 be approved; and

(2)       That the Executive Director for Finance & Resources be authorised to amend the Council’s Council Tax Reduction Scheme (Persons who are not pensioners), (Brighton & Hove City Council) 2013 to reflect the changes at 3.8 to 3.12 of the report and to take all steps necessary and incidental to the introduction of the revised Scheme.

47.12   The Mayor noted that the meeting had been in session for almost two hours and stated that she would adjourn the meeting for half-an-hour for a refreshment break.

47.13   The Mayor then adjourned the meeting at 6.20pm.

47.14   The Mayor reconvened the meeting at 6.50pm.