Cabinet Member for Finance
At its meeting on 9th January 2023, Cabinet considered Paper MCa/22/34 – Council Tax Reduction (Working Age) Scheme 2023/24. The recommendation set out in the report was accepted.
That Council approves Option 3 (as set out in Appendix C of this report) be used as the basis for a revised (Working Age) Council Tax Reduction Scheme for 2023/24.
In addition the following recommendations as a result of the Governments announcements in the Provisional Settlement relating to the additional local Council Tax Support award for 2023/24:
1. That Council approves the introduction of an additional Local Council Tax Support award for 2023/24 of up to at least £25 per recipient where residual liability for Council Tax exists, as permitted under Section 13A (1) (c) of the Local Government Finance Act 1992.
2. That Council gives authority to the Director for Corporate Resources in consultation with the Cabinet Member for Finance to agree Local Discretionary Policy as permitted under Section 13A (1) (c) of the Local Government Finance Act 1992 to determine the method of distribution for any funds remaining from the additional Council Tax Support Fund for 2023/24
3. Links to the Government website containing information on the scheme:
16/2022: Council Tax information letter - 23 December 2022 - GOV.UK (www.gov.uk)
Council Tax Support Fund guidance - GOV.UK (www.gov.uk)
Minutes:
The Chair invited Councillor Whitehead, Cabinet Member for Finance, Assets and Investments to introduce report MCa/22/34.
Councillor Whitehead PROPOSED the Recommendations which was SECONDED by Councillor Ekpenyong.
Councillor Eburne asked what the expected cost of the scheme was, and whether the government’s council tax fund allocation was to be used in addition to the scheme.
Councillor Whitehead directed the Council to option 2 within the report in regard to the scheme’s cost and further detailed the cost breakdown. Councillor Whitehead confirmed that the £114,000 government fund would be used in its entirety to be distributed to qualifying residents.
Councillor Eburne asked for confirmation that the total cost of the scheme was £16,600 and queried where the £26,100 in option C was placed.
Councillor Whitehead explained that as the scheme is dependent on qualifying residents, an anticipated cost of £26,100 has been reserved from the Council’s Covid-19 earmarked reserve.
Councillor Eburne asked whether that meant the cost was in actually £42,700 from two financial resources.
Councillor Whitehead confirmed the total was £42,700 plus the addition of £6,600 subsidies for parish councils.
Councillor Eburne noted her dissatisfaction with the clarity of the figures.
Councillor Whitehead mentioned that simplified administration costs beyond year 1 would also save some expenses.
Councillor Mansel voiced concern to the survey results in Appendix D, which entailed a survey figure of 53 people, and asked how the survey was conducted. Additionally, Councillor Mansel expressed her disappointment on pg.34 that monetary figures were used instead of percentages.
The Director of Corporate Resources substantiated the survey process.
Councillor Whitehead clarified that 53 responded over and above the statutory requirement and defended the number as normal for a non-contentious item.
Councillor Pratt enquired what the eligibility for the council tax reduction scheme would be for people with a recognised disability who were not necessarily using universal credit.
The Shared Revenues Partnership Operational Manager explained that the scheme is a change to an existing scheme, with the simplification that those who work pay something and those who do not work pay nothing. Additionally, eligibility is low-income inclusive.
Councillor Passmore declared an interest as a police and crime commissioner with the agenda item impacting the policing budget. Councillor Passmore requested clarity on houses with multiple incomes.
The Shared Revenues Partnership Operational Manager explained that council tax is a household tax and therefore council tax reduction takes into consideration all household incomes. With regard to Universal Credit, the Department of Work and Pensions take over the means test and eligibility.
Councillor Stringer asked what determines a deserving recipient.
The Shared Revenues Partnership Operational Manger answered that the award was for anybody in receipt of council tax reduction, with the exception of those who obtain 100% council tax reduction as the £25 award is only deductible on remaining balances.
Councillor Carter sought clarification on whether the 100% reduction applies to those with UC and/or to those on the council tax reduction scheme.
Councillor Whitehead confirmed both.
Councillor Matthissen requested a communications release to clarify the process.
Councillors debated the matter in support of the recommendation to assist the financially vulnerable. During the debate some concern was raised regarding residents who might not quite qualify though the cost-of-living strategy was acknowledged as another avenue of support. Concern was also voiced towards the arrangements for the subsequent financial year, as well as concern towards the clarity of the financial reporting due to the entanglement with other districts and the Ipswich Borough in the Shared Revenues Partnership. In addition, it was acknowledged that the scheme would provide a reduction in administrative expenses and staff pressures.
It was RESOLVED:
1. That Council approved Option 3 (as set out in Appendix C of this report) be used as the basis for a revised (Working Age) Council Tax Reduction Scheme for 2023/24. In addition, the following recommendations as a result of the Governments announcements in the Provisional Settlement relating to the additional local Council Tax Support award for 2023/24
2. That Council approved the introduction of an additional Local Council Tax Support award for 2023/24 of up to at least £25 per recipient where residual liability for Council Tax exists, as permitted under Section 13A (1) (c) of the Local Government Finance Act 1992.
2. That Council gives authority to the Director for Corporate Resources in consultation with the Cabinet Member for Finance to agree Local Discretionary Policy as permitted under Section 13A (1) (c) of the Local Government Finance Act 1992 to determine the method of distribution for any funds remaining from the additional Council Tax Support Fund for 2023/24.
Supporting documents: