Issue - meetings

Report of Executive Director Finance and Governance (Interim)

Purpose of report

To provide members with a review of Council Tax discounts and to seek approval to recommend the proposed level of Council Tax discounts for the 2019-2020 financial year to Council.

To provide an update on the Council Tax Reduction Scheme for 2018-2019 and to seek approval to recommend a Council Tax Reduction Scheme for the financial year 2019-2020 to Council.    

Recommendations

The meeting is recommended:

 1.1        To note the contents of the report and any financial implications for the Council.

1.2    To recommend to Council the option of no change to the Council Tax Reduction Scheme (CTRS) for 2019-2020 (and therefore no consultation is required) and to amend the Council Tax Reduction Scheme Regulations for pensioners in line with uprating announced by DCLG and to uprate the Working Age Regulations in line with those announced by Department for Work and Pensions (DWP).

1.3.  To recommend to Council that delegated authority is given to the Executive Director Finance and Governance to make any changes to the CTRS Regulations up to and including 31 January 2019 in consultation with the Lead Member for Financial Management.

1.4    To review the proposed level of Council Tax discounts for 2019-2020 and make recommendations to Council as follows:

·         Retain the discount for second homes at zero.

·         Retain the discount for empty homes (unoccupied and substantially unfurnished) at 25% for 6 months and thereafter at zero.

·         Retain the discount for empty homes undergoing major repair at 25% for 12 months and thereafter at zero.

·         Retain the empty homes premium of an additional 50% for properties that have remained empty for more than 2 years. 

Resolved

(1)          That the contents of the report and any financial implications for the Council be noted.

(2)          That the option of no change to the Council Tax Reduction Scheme (CTRS) for 2019-2020 (and therefore no consultation is required) and the Council Tax Reduction Scheme Regulations for pensioners in line with uprating announced by DCLG and to uprate the Working Age Regulations in line with those announced by Department for Work and Pensions (DWP) be recommended for the Council.

(3)          That Council be recommended to give delegated authority to the Executive Director Finance and Governance, in consultation with the Lead Member for Financial Management, to make any changes to the CTRS Regulations up to and including 31 January 2019.

(4)          That, having given due consideration, the following proposed level of Council Tax discounts for 2019-2020 be recommended to Council:

·         Retain the discount for second homes at zero.

·         Retain the discount for empty homes (unoccupied and substantially unfurnished) at 25% for 6 months and thereafter at zero.

·         Retain the discount for empty homes undergoing major repair at 25% for 12 months and thereafter at zero.

·         Retain the empty homes premium of an additional 50% for properties that have remained empty for more than 2 years. 

The Executive Director Finance and Governance (Interim) submitted a report to provide members with a review of Council Tax discounts and to seek approval to recommend the proposed level of Council Tax discounts for the 2019-2020 financial year to Council.

The report also provided an update on the Council Tax Reduction Scheme for 2018-2019 and sought approval to recommend a Council Tax Reduction Scheme for the financial year 2019-2020 to Council.    

Resolved

(1)           That the contents of the report and any financial implications for the Council be noted.

(2)           That the option of no change to the Council Tax Reduction Scheme (CTRS) for 2019-2020 (and therefore no consultation is required) and the Council Tax Reduction Scheme Regulations for pensioners in line with uprating announced by DCLG and to uprate the Working Age Regulations in line with those announced by Department for Work and Pensions (DWP) be recommended for the Council.

(3)           That Council be recommended to give delegated authority to the Executive Director Finance and Governance, in consultation with the Lead Member for Financial Management, to make any changes to the CTRS Regulations up to and including 31 January 2019.

(4)           That, having given due consideration, the following proposed level of Council Tax discounts for 2019-2020 be recommended to Council:

·       Retain the discount for second homes at zero.

·       Retain the discount for empty homes (unoccupied and substantially unfurnished) at 25% for 6 months and thereafter at zero.

·       Retain the discount for empty homes undergoing major repair at 25% for 12 months and thereafter at zero.

·       Retain the empty homes premium of an additional 50% for properties that have remained empty for more than 2 years. 

Reasons

From April 2013 Council Tax Benefit was abolished and replaced with a local Council Tax Reduction Scheme. The Council is required to agree a scheme based on the reduced level of funding from Government

Members are now required to recommend a Council Tax Reduction Scheme to Council and it is recommended that members put forward option one which is a no change Council Tax Reduction Scheme for the 2019-2020 financial year. This option meets the objective of continuing to support residents whilst ensuring the scheme remains affordable.

Alternative options

Option 1:  To not recommend any of the options for a scheme for 2019-2020. This would have financial implications for the Council and those residents affected by Welfare Reform.

Option 2: To decrease the level of support to Working Age claimants. This would have an impact on some of the most vulnerable residents in the district and may significantly impact on collection rates.