Issue - meetings

This report provides options for the Local Council Tax Support Scheme from 2016/17 and asks members to choose their preferred option(s) in order that any consultation required can be undertaken over the summer.

The Committee received and considered a comprehensive report which set out options for the Local Council Tax Scheme for 2016/17 and asked Members to choose their preferred option in order that any consultation required could be undertaken over the summer.

The Committee noted that the Council was statutorily obliged to adopt such a scheme on an annual basis. The scheme could remain unchanged or be revised.  Consultation was required on any revised scheme prior to adoption.  The current scheme, approved by Council in December 2014, provided that everyone of working age paid a minimum of 20% of their Council Tax charge.

For 2016/17 the Council had the option of either continuing with the current scheme for a further year or increasing the percentage minimum contribution recipients of Council Tax support were required to pay. Whilst the report set out the data available, it was stressed that this was insufficient to provide a full analysis of the implications of the current scheme for the Council.

The report set out the advantages and disadvantages of both options and cautioned against the adoption of a “multi- year” scheme under which the maximum reduction changed year on year without undertaking further consultation each year. It was not absolutely clear from the legislation that this was permissible therefore there was a risk that a decision to do so could be susceptible to challenge, the cost of which was likely to be substantial.

The point was again made that it needed to be recognised that the funding gap created by the withdrawal of Government grants was effectively being met by the increase levied on council tax payers generally (assuming Council looked to cap any increase in Council Tax at 2%).  Realistically Members had few other options available to fund the growing cost of Council Tax Support.  Raising the Council Tax was limited to around 2% unless Members wished to go to a public referendum; reserves were currently only £600k above the minimum level and Council Tax Support was an ongoing cost.  The only other option was to reduce services further.

There being two options before the Committee, these were put to the vote.

It was put to Members that the Council continue with the current scheme for a further year to provide time for a full analysis of the effects of the scheme to assess the effects of other welfare reforms on the scheme (Option A). This would not require a public consultation.  This motion was lost, there being 3 members in favour and 6 against.

Accordingly, the Committee agreed (there being 5 members for and 4 against) that the Council should consider increasing the percentage minimum payment on the current scheme by between 5% and 10% for the 2016/17 financial year (Option B).  This would require a public consultation. 

Note: Councillor Omer KoKou-Tchri left the chamber during consideration of this item and took no part in the debate on this matter.