Issue - meetings

Purpose of Report

To provide the Executive with an opportunity to review consultation responses and consider the Council’s proposed Localised Council Tax Support Scheme for 2018/19.

Decision

That Council be recommended to:

(1)          Review consultation responses relating to the Localised Council Tax Support Scheme for 2018/19.

(2)          Approve the Council’s proposed Localised Council Tax Support Scheme for 2018/19 incorporating the following changes to the 2017/18 scheme:

-       protection for vulnerable households;

-       exceptional hardship fund of £20,000 (increase from £10,000).

Alternative Options Considered and Rejected

Scheme options for 2018/19 were set out in paragraphs 5.1 to 5.10 of the report.

Reason for Decision

The current Council Tax Support Scheme for the City of Lincoln consisted of the following:

·         backdating restricted to one month;

·         restricted to Council Tax to Band B;

·         inclusion of temporary absence from home rule (four weeks);

·         maximum capital allowance of £10,000;

·         minimum Council Tax Support award of up to £2 per week.

The current scheme was supported by the following technical amendments:

·         any property empty (unoccupied and unfurnished) for less than two months would be granted 50% discount each month;

·         if a property was empty (unoccupied and unfurnished) after two months, a full charge would apply;

·         if a property remained empty (unoccupied and unfurnished) for more than two years, an additional levy of 50% would be charged making the total charge 150%, from the date the property first became empty;

·         occupation of a property for less than six weeks was not counted as a break in the empty period;

·         the discount on furnished properties which were no-one’s sole of main residence (second home) was 0%.

The financial year 2017/18 was the fifth year of operating the Council Tax Support Scheme with the City of Lincoln’s criteria, with last year being the first year where the Council had changed is scheme to include the above conditions, other than changes in legislation or upratings for example. It was noted that some residents had been adversely affected by the changes to the scheme, with some impacts being more than expected when initial modelling had been undertaken. The provision of a higher amount included in the exceptional hardship fund would have helped to mitigate these issues, which were unknown at the time of the modelling.

The process of reviewing the Council Tax Support Scheme was outlined in paragraphs 4.1 to 4.5 of the report, which also set out caseload changes from April 2013 and the current cost of the scheme. Based on modelling undertaken in August 2017, the Executive at its meeting on 25 September 2017 had agreed to consult on the following changes to the scheme:

·         restriction on young person’s allowance to two dependent children;

·         abolish family premium;

·         reduce maximum entitlement to either 95% or 90%;

·         protection for vulnerable households;

·         continuation of the exceptional hardship fund.

Formal consultation was held from 2 October 2017 to 10 November 2017, with details of responses being set out in Appendix 2 of the report. Key results had been summarised and were noted as  ...  view the full minutes text for item 102