Issue - meetings

Report of Corporate 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 seek approval to recommend a Council Tax Reduction Scheme for the financial year 2020-2021 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 a Council Tax Reduction income banded scheme for the financial year 2020-2021 and to amend the Council Tax Regulations for pensioners in line with uprating announced by MHCLG and to amend the Working Age Regulations in line with the new income banded scheme and the uprating announced by MHCLG. 

1.3     To recommend to Council that delegated authority is given to the Executive Director Finance to make the required changes to the CTRS Regulations up to and including 31 January 2020 in consultation with the Lead Member for Financial Management.

1.4     To review the proposed level of Council Tax discounts and premiums for

2020-2021 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 Full Council be recommended to approve the option of a Council Tax Reduction income banded scheme for the financial year 2020-2021 and to amend the Council Tax Regulations for pensioners in line with uprating announced by MHCLG and to amend the Working Age Regulations in line with the new income banded scheme and the uprating announced by MHCLG. 

(3)            That Full Council be recommended to grant delegated authority to the Executive Director Finance (Interim) to make the required changes to the Council Tax Reduction Scheme Regulations up to and including 31 January 2020 in consultation with the Lead Member for Financial Management.

(4)            That having given due consideration, the following proposed level of Council Tax discounts and premiums for 2020-2021 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 100% for properties that have remained empty for more than 2 years. 

The Corporate 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.

The report also provided an update on the Council Tax Reduction Scheme for 2019-2020 and sought approval to recommend a Council Tax Reduction Scheme for the financial year 2020-2021 to Council.

Resolved

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

(2)            That Full Council be recommended to approve the option of a Council Tax Reduction income banded scheme for the financial year 2020-2021 and to amend the Council Tax Regulations for pensioners in line with uprating announced by MHCLG and to amend the Working Age Regulations in line with the new income banded scheme and the uprating announced by MHCLG. 

(3)            That Full Council be recommended to grant delegated authority to the Executive Director Finance (Interim) to make the required changes to the Council Tax Reduction Scheme Regulations up to and including 31 January 2020 in consultation with the Lead Member for Financial Management.

(4)            That having given due consideration, the following proposed level of Council Tax discounts and premiums for 2020-2021 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 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 recommend a Council Tax Reductions Scheme for the financial year 2020-2021 to Council.

Alternative options

Option 1:  To not recommend any of the options for a scheme for 2020-2021. 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.