Issue - meetings

Report of Assistant Director of Finance

Purpose of report

To enable members to consider the banded scheme for Council Tax Reduction and to seek approval to recommend to Council a council Tax Reduction Scheme for the financial year 2023/24.

To note potential changes to Council Tax discounts and reliefs which are currently subject to consultation as part of the Council’s budget consultation

Recommendations

The meeting is recommended:

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

1.2         To recommend to Council:

·         The option of no change to the Council Tax Reduction Income Banded Scheme for Working Age Customers for 2023 -24.

·         To amend Working Age Regulations in line with annual uprating; and to amend the Council Tax Regulations for pensioners in line with uprating announced by Department for Levelling Up, Housing and Communities.

1.3         To recommend to Council the levels of Council Tax discounts and premiums remain the same as previous years:

·         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 zero.

·         Retain the empty homes premium of an additional 100% for properties that have remained empty for more than 2 years (total Council Tax payable 200%).

1.4         To note and to highlight to Council that the following Council Tax discounts and premiums are currently proposed to change as part of the Council’s 2023/24 budget consultation:

·         Introduce an empty homes premium of an additional 200% for properties that have remained empty for more than 5 years (total Council Tax payable 300%).

·         Introduce an empty homes premium of an additional 300% for properties that have remained empty for more than 10 years (total Council Tax payable 400%).

·         Removal of the 25% discount for 12 months (zero thereafter) for dwellings which are vacant and undergoing major repair work to render them habitable.

Resolved

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

(2)          That Council be recommended to agree:

·         The option of no change to the Council Tax Reduction Income Banded Scheme for Working Age Customers for 2023 -24.

·         To amend Working Age Regulations in line with annual uprating; and to amend the Council Tax Regulations for pensioners in line with uprating announced by Department for Levelling Up, Housing and Communities.

(3)          That Council be recommended to agree that the levels of Council Tax discounts and premiums remain the same as previous years 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 zero.

·         Retain the empty homes premium of an additional 100% for properties that have remained empty for more than 2 years (total Council Tax payable 200%).

(4)          That it be noted and  Council be recommended to note that the following Council Tax discounts and premiums were currently proposed to change as part of the Council’s 2023/24 budget consultation:

·         Introduce an empty homes premium of an additional 200% for properties that have remained empty for more than 5 years (total Council Tax payable 300%).

·         Introduce an empty homes premium of an additional 300% for properties that have remained empty for more than 10 years (total Council Tax payable 400%).

·         Removal of the 25% discount for 12 months (zero thereafter) for dwellings which are vacant and undergoing major repair work to render them habitable.

The Assistant Director of Finance submitted a report to enable members to consider the banded scheme for Council Tax Reduction and to seek approval to recommend to Council a council Tax Reduction Scheme for the financial year 2023/24.

To note potential changes to Council Tax discounts and reliefs which are currently subject to consultation as part of the Council’s budget consultation

In introducing the report, the Portfolio Holder for Finance advised that the Budget Planning Committee considered the Council Tax Reduction Scheme 2023 24 at its meeting on 26 July 2022 and recommended that the scheme remain unchanged for 2023/24

The Portfolio Holder for Housing highlighted that the banded scheme had been introduced whilst he had been Budget Planning Committee Chairman. The introduction of a banded scheme had cross-party support for the administrative simplicity for recipients and the council.

Resolved

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

(2)          That Council be recommended to agree:

·         The option of no change to the Council Tax Reduction Income Banded Scheme for Working Age Customers for 2023 -24.

·         To amend Working Age Regulations in line with annual uprating; and to amend the Council Tax Regulations for pensioners in line with uprating announced by Department for Levelling Up, Housing and Communities.

(3)          That Council be recommended to agree that the levels of Council Tax discounts and premiums remain the same as previous years 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 zero.

·         Retain the empty homes premium of an additional 100% for properties that have remained empty for more than 2 years (total Council Tax payable 200%).

(4)          That it be noted and  Council be recommended to note that the following Council Tax discounts and premiums were currently proposed to change as part of the Council’s 2023/24 budget consultation:

·         Introduce an empty homes premium of an additional 200% for properties that have remained empty for more than 5 years (total Council Tax payable 300%).

·         Introduce an empty homes premium of an additional 300% for properties that have remained empty for more than 10 years (total Council Tax payable 400%).

·         Removal of the 25% discount for 12 months (zero thereafter) for dwellings which are vacant and undergoing major repair work to render them habitable.

Reasons

The current scheme is understood by customers and has enabled them to budget for their council tax payments. One of the main advantages of the banded scheme is that it reduces the number of changes that the customer will experience enabling more effective personal budgeting.

There is still a lot of financial uncertainty for many customers and in the current financial climate with the ongoing cost of living crisis it is therefore recommended that the existing scheme should be retained for 2023/24.

Alternative options

The alternative option is to undertake a review of the current CTRS. This option is rejected as the  ...  view the full minutes text for item 66