Agenda item

To consider this report.

KEY DECISION

Following consideration of the officer report, appendices and discussion, the Executive agreed:

a.  The Council Tax Reduction and Exceptional Hardship schemes set out in Appendices 4 and 5 of the report.

b.  Option 3 in relation to the income band thresholds used within Schedule 1 of the proposed Council Tax Reduction scheme i.e. uprating in line with the 6.7% rise in state benefits announced by Govt. in the November 2023 Autumn Statement.

c.  A full review of the Council Tax Reduction scheme during the 2024/25 financial year to identify options for a revised scheme in the 2025/26 financial year. (NB. The review and consultation exercise will require funding which is anticipated to be in the region of £60k).

ALTERNATIVE OPTIONS CONSIDERED: As set out in the officer report

REASON FOR DECISION: As set out in the officer report

The Leader of the Council and Lead Member for Governance and Communications, Cllr Bill Revans, invited the Deputy Leader and Lead Member for Resources and Performance, Cllr Liz Leyshon, to introduce the report. 

The Deputy Leader and Lead Member for Resources and Performance, Cllr Liz Leyshon, introduced the report, highlighting: that Council Tax legislation requires the Council, as a billing authority, to formally agree a Council Tax Reduction (CTR) scheme for each financial year for working age people; that the income banded scheme approved in November 2022  proved to be both workable and welcome for those whose household incomes have been under most pressure during the cost of living crisis; that it was concluded following the light touch review that no major changes were required to the scheme.  (NB. Major changes require full public consultation, which has not been undertaken as no such changes were identified as being required).

The Interim Revenues & Benefits Manager, Richard Sealy, presented the report, highlighting: that the report sets out the proposed Council Tax reduction scheme for the 2024/25; that no decision is required in respect of the scheme for pension age applicants as this element of the scheme is prescribed by Government; that the Government will update this part of the scheme in December 2023 and the necessary adjustments made; the significant project that was undertaken last year to develop a new aligned CTR scheme to help facilitate the move to the new Somerset Council; the aligning of the different former District Council schemes to a single income banded scheme, with significant financial modelling and a full public consultation exercise; summarised the light touch review undertaken earlier in 2023 and the feedback considered from a local Citizens Advice office; the change identified to uprate the income band thresholds within the scheme in line with the rate of inflation that government choose to apply to state benefits; the key changes proposed in relation to next year’s scheme relate to the uprating of the income band thresholds within the scheme; that the Council’s financial position has significantly worsened since the review was undertaken and to the extent where all expenditure now needs to be considered for potential savings; summarised the different options outlined in the report  and the potential cost reduction for each of the options; high level estimates in terms of the impact through the national living wage increase; and the potential of major review and the resources required.

The Leader of the Council and Lead Member for Governance and Communications, Cllr Bill Revans, invited comments from other Members present, questions and points raised included: the discretionary support scheme to support vulnerable Council Tax payers and the mandate from Government to support people of pension age and the impact, cost and consequences for people in receipt of national living wage / State benefits and the Council; S114 and the affect should Commissioners be called in; the Council tax based on property value in 1991 and the unsustainable way of funding a Council; the positive introduction of the scheme and the report proposals; the cost and funding of the Government mandate for pension age persons; the need for government review, and collective lobbying for change; the Government Council Tax support scheme  number  and circumstances of claims; and the continuation of the good work to getting the word out about the Exceptional Hardship schemes.

The Executive proceeded to vote on the recommendations, which were agreed unanimously.?? 

Following consideration of the officer report, appendices and discussion, the Executive agreed:

a.The Council Tax Reduction and Exceptional Hardship schemes set out in Appendices 4 and 5 of the report.

b.Option 3 in relation to the income band thresholds used within Schedule 1 of the proposed Council Tax Reduction scheme i.e. uprating in line with the 6.7% rise in state benefits announced by Govt. in the November 2023 Autumn Statement.

c.  A full review of the Council Tax Reduction scheme during the 2024/25 financial year to identify options for a revised scheme in the 2025/26 financial year. (NB. The review and consultation exercise will require funding which is anticipated to be in the region of £60k).

ALTERNATIVE OPTIONS CONSIDERED: As set out in the officer report

REASON FOR DECISION: As set out in the officer report