Agenda item

To consider the report of the Head of Resources.

Report to follow.

(Councillor Taylor, having previously declared an interest, left the meeting before consideration of the following item.)

Council considered a report detailing imminent welfare reform changes with regard to council tax benefit.

The report informed Council of provisions in the Welfare Reform Act 2012 to abolish the current national Council Tax Benefit (CTB) scheme to pave the way for new Localised Council Tax Support Schemes. The report presented three options for a Localised Council Tax Support Scheme for 2013/14 and requested that Council adopt a scheme before 31 January 2013, in line with the duty imposed by the Local Government Finance Act 1992, as amended.

The Head of Resources and Head of Revenues and Benefits responded to a number of questions from Members.

Councillor Bryning proposed, seconded by Councillor Hamilton-Cox:

“Fundamentally, Council is concerned about Government’s decision to reduce funding for providing council tax support and the impact that would have if those reductions are passed on to low income households.  Council is also concerned about the difficulties in ensuring acceptable collection performance.

Whilst the Council recognises the severe Government funding reductions facing local government services from 2014/15 onwards, it also recognises that in the next financial year, 2013/14, the City Council’s finances are manageable.

Furthermore, the decisions already taken to increase council tax income from second and empty homes give all tiers of local government more flexibility to manage their budget pressures and to help protect essential services, subject to annual review and depending on collection performance.

The Council has time during the course of next year, therefore, to learn from the experiences of other councils who introduce reductions to council tax support levels.  This will inform the Scheme design for 2014/15 onwards, with the expectation that reductions in council tax support will be implemented from 01 April 2014.

Accordingly, it is proposed that for one year only:

(1)               Council adopts a Localised Council Tax Support Scheme that retains existing levels of council tax support for the year commencing 01 April 2013, based on Option 2 in the report despite the reduced grant from Government.

(2)               That the adopted scheme be based also on the summary principles set out in Appendix A, as amended to reflect (1) above, but noting any Hardship Fund need only be based on existing provisions.

(3)               That the 2013/14 Revenue Budget be updated to provide one-off funding for Parish and Town Councils in accordance with Council’s adopted Scheme, with amounts to be paid in one instalment at the same time as precepts.

(4)               That the Head of Resources be authorised to publish the Council’s adopted full Scheme and make all other necessary arrangements for its implementation for next financial year, and to communicate this decision and its rationale to relevant stakeholders.

(5)               That the operation and financial implications of the Council’s adopted Scheme be monitored closely (for all tiers of local government, including parishes) and it be subject to formal review in a year’s time, alongside other alternatives.”

Following a lengthy debate a recorded vote on the proposition was requested in accordance with Council Procedure Rule 20.4.  The votes were recorded as follows:-

For the motion:

Councillors Aitchison, Anderson, Bancroft, Barry, Bevan, Blamire, Brookes, Bryning, Coates, Denwood, Dixon, Forrest, Gardner, Hall, Hamilton-Cox, Hanson, Kay, Kennedy, Leytham, Marsland, Metcalfe, Mumford, Newman-Thompson, Ian Pattison, Margaret Pattison, Pickles, Price, Redfern, Sands, Scott, Sherlock, David Smith and Whitaker  (33).

Against the motion:

Councillors Budden, Burns, Dennison, Greenall, Histed, Jackson, Mace, Parkinson, Rogerson, Emma Smith, Sykes, Thomas and Williamson (13).

The Mayor declared the motion clearly carried.

Resolved:

Fundamentally, Council is concerned about Government’s decision to reduce funding for providing council tax support and the impact that would have if those reductions are passed on to low income households.  Council is also concerned about the difficulties in ensuring acceptable collection performance.

Whilst the Council recognises the severe Government funding reductions facing local government services from 2014/15 onwards, it also recognises that in the next financial year, 2013/14, the City Council’s finances are manageable.

Furthermore, the decisions already taken to increase council tax income from second and empty homes give all tiers of local government more flexibility to manage their budget pressures and to help protect essential services, subject to annual review and depending on collection performance.

The Council has time during the course of next year, therefore, to learn from the experiences of other councils who introduce reductions to council tax support levels.  This will inform the Scheme design for 2014/15 onwards, with the expectation that reductions in council tax support will be implemented from 01 April 2014.

Accordingly, it is proposed that for one year only:

(1)               Council adopts a Localised Council Tax Support Scheme that retains existing levels of council tax support for the year commencing 01 April 2013, based on Option 2 in the report despite the reduced grant from Government.

(2)               That the adopted scheme be based also on the summary principles set out in Appendix A, as amended to reflect (1) above, but noting any Hardship Fund need only be based on existing provisions.

(3)               That the 2013/14 Revenue Budget be updated to provide one-off funding for Parish and Town Councils in accordance with Council’s adopted Scheme, with amounts to be paid in one instalment at the same time as precepts.

(4)               That the Head of Resources be authorised to publish the Council’s adopted full Scheme and make all other necessary arrangements for its implementation for next financial year, and to communicate this decision and its rationale to relevant stakeholders.

(5)               That the operation and financial implications of the Council’s adopted Scheme be monitored closely (for all tiers of local government, including parishes) and it be subject to formal review in a year’s time, alongside other alternatives.