Cabinet Member: Councillor Lowry.

The City Council will be asked to consider the Cabinet recommendation and the report of the Director for Corporate Services.  The Council Tax Reduction Scheme Policy will follow.

Minute 103 (of the Cabinet meeting held on 11 December 2012) refers.

Councillor Lowry (Cabinet Member for Finance) presented the recommendations in the written report of the Director for Corporate Services to the City Council on the Council Tax Support Scheme.  Cabinet minute 103 and the written report of the Director for Corporate Services to Cabinet also referred.

The proposals were seconded by Councillor Penberthy.

Following a request for advice on interests, the Monitoring Officer advised that it was a Member’s responsibility to determine whether they had an interest and that it was not practical to provide advice during a meeting. 

Following a debate, Councillor Lowry undertook to continue to monitor the implementation and impact of the scheme and report back to council.

Agreed the Council Tax Support Scheme as set out in the Council Tax Reduction Scheme Policy, the Exceptional Hardship Fund Policy and Vulnerability/Incentivising Work Statement.  

(Councillors Churchill, Gordon and Jordan declared interests and withdrew from the meeting during consideration of the item).

The Director for Corporate Services will submit a report on a localised Council tax support scheme to be adopted by January 2013 and fully implemented by April 2013.

The Director for Corporate Services submitted a written report seeking approval of a localised Council tax support scheme to be adopted by January 2013 and fully implemented by April 2013.  

The report indicated that the support scheme would replace the existing Council tax benefit scheme.  Funding for Council tax support would no longer be met from annually managed expenditure which was demand led but would be set through an upfront grant allocation for all billing and major precepting authorities. Indications were that national funding for the new scheme would be 10 per cent less than current spend levels. 

Councillor Lowry (Cabinet Member for Finance) presented the update and indicated that –

(a)   as a result of the budget shortfall of £2.6m, it was necessary to implement a revised scheme;

(b)  no changes would be made to the discounts to pensioners, single persons, war widows, widowers and veterans;

(c)   following consultation, it was proposed to reduce the proposed 30 per cent blanket reduction across all working age claimants to 25 per cent;

(d)  an exceptional hardship fund would be set up to support those people most affected;

(e)  the threshold for savings had increased from the consultation proposal of £3,000 to £6,000.    

Alternative options considered and reasons for the decision –

As set out in the report.

The City Council is Recommended to approve a localised Council tax support scheme, as detailed in the report.