Issue - meetings

Report of Executive Director Finance (interim)

Purpose of report

To provide members of Budget Planning Committee with an update on the current Council Tax Reduction Scheme and the changes to discounts, including the impact on collection rates.

To provide members with options to consider for a Council Tax Reduction Scheme for 2020-2021.    

Recommendations

The meeting is recommended:

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

1.2     To consider a review of the current Council Tax Reduction Scheme and to receive a further report on financial modelling for a new banded scheme and other options.

Resolved

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

(2)  That, having given due consideration, it be agreed that the current Council Tax Reduction Scheme be reviewed and a further report on financial modelling for a new banded scheme be submitted to a future meeting of the Committee. 

The Committee considered a report from the Interim Executive Director – Finance and Governance, which provided Members with an update on the current Council Tax Reduction Scheme and the changes to discounts, including the impact on collection rates. The report also provided Members with options to consider for a Council Tax Reduction Scheme for 2020-2021.

In introducing the report, the Operations Director – CSN Resources advised Members that the current Council Tax Reduction scheme, which was based on a fixed cash grant of approximately 90% of the previous Council Tax Benefit subsidy, gave the Council a funding shortfall of £742,430 which was mostly offset by existing Council Tax Discounts.

Following questions from the Committee regarding the potential impact of Universal Credit on future Council Tax Reduction Schemes, the Interim Executive Director – Finance and Governance reassured Members that the most vulnerable customers in the District had continued receive all appropriate support that they were entitled to.

In response to further questions from Members regarding how future Council Tax changes would be communicated to customers, the Operations Director – CSN Resources advised that any future changes would go out to full consultation beforehand.

Resolved

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

(2)  That, having given due consideration, it be agreed that the current Council Tax Reduction Scheme be reviewed and a further report on financial modelling for a new banded scheme be submitted to a future meeting of the Committee.