Agenda item

To consider the report and make any appropriate recommendations to Cabinet.

In presenting the report the Revenues and Benefits Manager advised that the Council must review and agree its Council Tax Support Scheme each financial year.  The process included consulting with major preceptors, publishing a draft Council Tax Support Scheme and then consulting with interested parties before the final Council Tax Support Scheme was approved.

The Revenues and Benefits Manager explained that the report detailed a review of the 2015/2016 Council Tax Support Scheme, the consultation responses from Norfolk County Council and Norfolk’s Police and Crime Commissioner, and the recommended draft 2016/2017 Council Tax Support Scheme to go to public consultation.

The Panel were provided with background information.  It was noted that the Council Tax Benefit was abolished on 31 March 2013 and from April 2013 billing authorities had implemented their own local schemes of Council Tax Support to assist people on low incomes with their council tax costs.

The Revenues and Benefits Manager outlined some of the elements of a local Council Tax Scheme which Central Government had prescribed as set out below:

·         Pension age claimants were excluded from local Council Tax Support Schemes and received Council Tax Support based on a national, more generous, set of regulations, although the cost was still met by local Councils.

·         Vulnerable groups must be considered for protection from any reduction in support compared to the national Council Tax Support Scheme.

·         Work incentives should be promoted.

Members were advised that there was little feedback received following public consultation and compared to the same time last year, the Borough Council’s overall caseload had decreased by 5%.  However, the number of people under the work incentives had increased which was encouraging.

The Revenues and Benefits Manager provided an overview of The Welfare Reform Bill 2015 and Universal Credit as set out in the report at section 3.

Members’ attention was drawn to the other options considered detailed at section 6 of the report.

Councillor Collop commented that the Borough Council did not know what other Councils were proposing and that there were a number of different schemes being operated in Norfolk.  He added that when the Borough Council knew what other Councils were proposing then the Borough Council could make a decision.  In response, the Chairman, Councillor Humphrey commented that there was contact amongst Norfolk Councils, but it was important that the Borough Council made a decision on a draft scheme to go out to consultation.  In conclusion, the Chairman added that in the past the Borough Council’s scheme had been at the correct level for the Borough.

In response to further questions from Councillor Collop, the Revenues and Benefits Manager explained that the reason why the Borough Council’s had the biggest cut was down to the demographics of the area and the number of pension age claimants which had to be protected and informed Members that there were 54% of pensioners in the Borough.

Following further comments from Councillor Collop, the Assistant Director explained that the Borough Council did have information from other Councils and undertook to email the information to the Panel.  The Assistant Director advised that from a financial point of view during year 1 a transitional grant was available.  If the Council proposed a 100% fully funded scheme there would be a cost of £100,000 to the Council and if the percentage was therefore changed it would have an impact on the Financial Plan.

The Deputy Leader informed the Panel that when the report was considered by Cabinet, the Leader took into account of the schemes in operation in other Norfolk Councils as well as the Borough Council’s demographics and gave Members assurance that all benefactors were taken into account by Cabinet.

In response to questions from Councillor Collop on the amount of money received by Norfolk County Council from other District Councils and other schemes which were beneficial to residents, the Chief Executive referred to section 2.5 of the report – the spend on protected groups and the costs of the work incentives within the scheme.

Councillor Collop commented that the Borough Council should look at other Norfolk Councils to see what they did differently.

The Deputy Leader stated that this was an important point and referred to Appendix B – Comparison of the 2014/2015 and 2015/2016 caseloads and that only 10% were not protected, this indicated that the Council was proposing a Scheme which could be supported.  Comparisons with other Councils had formed part of the report.

Councillor Collop wished it to be recorded that he did not support recommendation 3.

RESOLVED:  The Panel support the recommendations to Cabinet as follows:

1)            Note the consultation responses from Norfolk County Council and Norfolk’s Police and Crime Commissioner.

2)            Agree a public consultation period running online over a six week period from 18 September 2015 to 30 October 2015.

3)            Agree the Council Tax Support Scheme for 2015/2016, with the amendments as shown at Appendix C, as the draft Council Tax Support Scheme for 2016/2017 to go to public consultation.

4)            Note that a further report detailing the proposed final Council Tax Support Scheme for 2016/2017 would be presented to Cabinet, for recommendation to Council, before 31 January 2016.

5)            The cost of the Council Tax Scheme and the impact of the taxbase would be monitored and an update report brought back before Members after six months.