Issue - meetings

Report of the Executive Director Finance (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 2020-2021 financial year to Council.

To provide an update on the Council Tax Reduction Scheme for 2019-2020 and to outline options for a Council Tax Reduction Scheme for 2020-2021

To seek approval to consult on the recommended option.

Recommendations

The Executive is recommended:

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

1.2    To consider the options for a Council Tax Reduction Scheme for 2020-2021 and to recommend option(s) for a full consultation process to be undertaken.

1.3     To review the proposed level of Council Tax discounts and premiums 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 100% 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, having given due consideration, the options for a Council Tax Reduction Scheme for 2020-2021 be noted and Option 1 – A new banded income CTR scheme for those of working age - be recommended for a full consultation process to be undertaken.

(3)            That, having given due consideration, the following proposed level of Council Tax discounts and premiums for 2019-2020 be recommended to Full 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 100% for properties that have remained empty for more than 2 years. 

The Executive Director Finance (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 2020-2021 financial year to Council.

Resolved

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

(2)            That, having given due consideration, the options for a Council Tax Reduction Scheme for 2020-2021 be noted and Option 1 – A new banded income CTR scheme for those of working age - be recommended for a full consultation process to be undertaken.

(3)            That, having given due consideration, the following proposed level of Council Tax discounts and premiums for 2019-2020 be recommended to Full 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 100% 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 consider the options contained in this report and to approve a consultation process to begin in September 2019.

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.