Issue - meetings

Report of Councillor Shuttleworth on behalf of the Cabinet.

This matter was proposed by Councillor Shuttleworth on behalf of the Cabinet and seconded by Councillor Mattock.

Resolved: (1) That the following changes to the current local council tax reduction scheme be approved:

(i)      That the maximum amount of council tax reduction be limited to 80% of the claimant’s council tax liability.

(ii)     That a minimum income floor for self-employed claimants be introduced.

(2) That no transitional arrangements be made in respect of the above changes.

(3) That the exceptional hardship scheme be adopted.

Report of Senior Head of Community.

Cabinet lead member:  Councillor Alan Shuttleworth.

(1) Full Council asked to approve following changes to the current council tax reduction scheme:

·         To limit the maximum amount of Council Tax Reduction to 80% of the claimant’s Council Tax liability

·         To introduce a minimum income floor for self-employed claimants.

(2) Senior Head of Community, in consultation with Deputy Chief Executive/S151officer, given delegated authority to make minor amendments to the text of the final scheme.

(3) Exceptional hardship scheme adopted.

33.1 Councillor Tony Freebody addressed the cabinet.  He had a number of concerns asking if there a definition of exceptional hardship should be given in the proposed policy and the impact of the proposed policies upon people with profound and severe learning disabilities.

33.2 Cabinet considered the report of the senior head of community.  The council was under a duty to review its local scheme each year and any changes to the scheme must be adopted by 31 January preceding the start of the new financial year. 

33.3 The current scheme, which was also adopted by the other East Sussex districts and boroughs, followed the principles of protecting the most vulnerable, incentivising individuals into work and took into account and responds to the requirement of government to reduce the cost by 10% of the previous council tax benefit scheme.  Key features of the adopted were the removal of the second adult rebate, a minimum award of £5 per week, and a reasonable increase in non-dependant deductions.

33.4 A county-wide project team reporting to chief executives and council leaders had been set up to consider options for the 2016/17 scheme.  This review was being conducted against a need for councils to seek budget savings in the face of continuing funding reductions by the government.  The estimated net cost to the council of the council tax reduction scheme for 2016/17, without making any changes, was £351,000 – a significant increase over an estimated cost of £18,000 if government grant had been maintained at 2013/14 levels.

33.5 The following of options were put forward for consideration:

·         Limiting council tax reduction (CTR) to a percentage of the council tax liability.

·         Assumption of a minimum income for self-employed claimants.

·         Reduction of the capital limit to £6,000 (currently £16,000).

It was noted that many local authorities had adopted a minimum level of 20% and that a similar limit in Eastbourne on current costs would save £164,629 and affect 5,672 claimants. 

33.6 Alongside the above options it was proposed that a separate exceptional hardship fund be created to mitigate the impact of any changes to the local scheme.  The report also highlighted the possible impact on collection rates from changes to the scheme and need to take steps to minimise any fall in collection and outlined the staffing arrangements and costs necessary to administer the hardship fund which would be shared among all the precepting and billing authorities.

33.7 The following papers were included with the report:

·         Draft exceptional hardship scheme

·         East Sussex County Council response to consultation.

·         Consultation results and comments.

·         Equality and fairness analysis.

The draft local council tax reduction scheme was available as a background paper.  Cabinet considered the responses to the consultation and the question of granting transitional relief.

*33.8 Resolved (budget and policy framework): (1) That full council be asked to (a) approve the following changes to the current council tax reduction scheme:

·         To limit the maximum amount of council tax reduction to 80% of the claimant’s council tax liability.

·         To introduce  ...  view the full minutes text for item 33