Agenda item

Martin Walmsley, Head of Shared Revenues and Benefits

a.    presented the proposed scheme for Local Council Tax Support for the financial year 2020/21, as part of the formal consultation period, as well as regarding proposals made in relation to an Exceptional Hardship Scheme, also regarding Council Tax changes.

b.    advised that based on the caseload as at 1^st September 2020, the current cost of the 2020/21 CTS scheme was £8,442,201 – with City of Lincoln Council’s share of this being £1,262,488 (14.99%). This was in excess of the budgeted tax base level by £360,971, with the additional cost for City of Lincoln Council’s share being £54,110. This increase in cost was a direct result of the increased caseload arising from the impact of Covid-19.

c.    gave the background to the scheme as detailed at paragraph 3 of the report and advised that there were currently 9031(as at 1^st September 2020) residents claiming Council Tax Support in the Lincoln District.

d.    advised that there were 2,806 pensioners in receipt of Council Tax Support and they were protected under the legislation so that they would not be affected by any changes made to the Council Tax Support Scheme.

e.    further advised that there were 3,874 where a local scheme could be determined.

f.     referred to paragraph 4 of the report and detailed the impacts of Covid-19 including a significant increase in caseload and cost of the scheme

g.    referred to paragraph 5 of the report and gave an overview of the current Council Tax Support Scheme.

h.    advised that based on the current core elements of the existing scheme, a caseload increases have been modelled, along with an increase in Council Tax of 1.9%. These were summarised in Appendix 1 of the report which gave an indication of the potential cost savings to the City of Lincoln. Also included was the potential value for non-collection (based on a reduction of 1% to the current collection rate in the taxbase 97.75% as a result of Covid-19).

i.      explained that as a billing authority the Council could decide whether or not to amend core elements of its Council Tax Support scheme each year. Officers were proposing changes to the core elements of the scheme, as summarised at Appendix A of the report.

j.      referred to paragraph 6.3 and 6.4 of the report and explained the technical amendments and assumptions that had been made in developing the modelling for each Council Tax Support Scheme.

k.    advised that alongside the proposed changes to the  Council Tax Scheme for 2021/22, it was proposed that £20,000 for an Exceptional Hardship Scheme be continued. 

l.      referred to paragraph 6.5 of the report and explained the Council Tax empty homes premium, from 1^st April 2021 Councils would have the powers for any property empty over ten years to receive a premium of 300% (incurring a 400% charge).

m.  asked for committee’s consideration and comments as part of the formal consultation process.

Question: If the maximum reward was reduced would they be referred to the Exceptional Hardship fund?

Response: It was possible that savings could be made in one area but it could increase costs in another area – for example recovery cost, potential write-outs.

Question: Could a cap be set?

Response: Within the current scheme there was a Council Tax banding cap for properties above band B. The vast amount of properties in Lincoln were band A and B.

Question: How many properties had been empty for more than 10 years?

Response: There were 26 properties affected in Lincoln.

Question: Could more money be added to the Exceptional Hardship fund if required?

Response: It would be a decision of the Council, if it looked like it would be over budget we could request more money.

RESOLVED that the Policy Scrutiny Committee

1.               the scheme options for 2021/22 as part of the public consultation, as set out in section 6 of the report be supported

2.               the proposed continuation of the £20,000, Exceptional Hardship fund for 2021/22 to top up Council Tax support awards in appropriate cases be supported.

3.               the proposed Council Tax changes of any property that had been empty for over 10 years to pay a premium of 300% (i.e incurring a total 400% Council Tax charge be supported.