Issue - meetings

Minute 522 refers

Note – Members are asked to bring their copy of the Executive agenda to the meeting.

Councillors J Wing and M Wood expressed their opposition to the proposed scheme on the basis that they did not believe that the more vulnerable sections of society should be shouldering the extra burden.  They indicated that they would not be supporting the proposals.

The Leader reminded Members that the new council tax benefits regime had been implemented by the Coalition Government.  He believed the proposed scheme in East Herts was fair and proportionate.

After being put to the meeting, and a vote taken, the proposals were CARRIED.

RESOLVED – that (A) the forecasted financial implications arising from the recommended scheme for the Council Tax Reduction Scheme (CTS), with effect from 1 April 2013 and the risks and assumptions attached to these, be approved; and

(B)      the CTS Scheme as now detailed in the report submitted, be approved.

The Executive Member for Finance submitted a report proposing the Council Tax Reduction Scheme for East Herts from April 2013.

The Executive recalled that, at its meeting held on 31 July 2012, it had authorised consultation on a draft scheme following the replacement of the current nationally prescribed scheme of council tax benefits by locally determined schemes of council tax support on 1 April 2013.  Details of the consultation responses were set out in the report submitted.  The Council was required to determine its local scheme by 31 January 2013 following this consultation period.    

The Executive Member advised that the Government had initially stated that it would provide grant funding at 90% of the projected cost of support as if the existing benefits scheme had continued.  However, additional support had since been announced at 91.5%.  Therefore, an 8.5% saving would need to be achieved in the cost of support or otherwise the Council would have to meet the difference.  He also advised that compensation for parish and town councils to cover any shortfall would be provided for the first year.  Officers had written to parish and town councils advising them of the implications of the new arrangements.

Various Members made comments and asked a number of questions relating to:

·          the impact on parish and town council finances;

·          the anticipated impact on staff workloads arising from an increase in public enquiries;

·          the likelihood of a reduced collection rate and the need for additional provision for write-offs;

·          the varying approaches being taken by neighbouring authorities following the failure to achieve a unified approach; and

·          the complexities of the new scheme and the need to provide public information in plain English.

The Executive supported the new scheme as now detailed.

RECOMMENDED – that (A) the forecasted financial implications arising from the recommended scheme for the Council Tax Reduction Scheme (CTS), with effect from 1 April 2013 and the risks and assumptions attached to these, be approved; and

(B)      the CTS Scheme as now detailed in the report submitted, be approved.

The Executive Member for Finance submitted a report inviting comments on the responses received to the draft local Council Tax Support Scheme which would replace the Council Tax Benefit arrangements.  The new scheme would be effective from 1 April 2013.  The Director of Finance and Support Services provided a summary of how the scheme would work, the full detail of which was set out in a report to the last meeting of this committee and summarised here in the supporting Essential Reference Papers.  The Director of Finance and Support Services advised Members that all comments would be referred to the Executive for consideration with a final decision on the scheme being taken by Council.

As a result of the consultation exercise only 94 responses had been received to the proposed scheme.  These comments were set out within Essential Reference Paper “B” of the report now submitted. 

The Director of Finance and Support Services advised Members that the Department for Communities and Local Government (DCLG) was proposing to make a £100m grant available to be shared out between Councils for one year to those authorities who produced a “well-designed” Council Tax Support Scheme.  This grant would be payable in March 2013 to those Councils whose schemes met the Government’s criteria, which was set out in the report now submitted.  The Director of Finance and Support Services advised Members that the “agreed scheme” had to be in place by 31 January 2013.

Councillor T Page stated that the Government Grant complicated the picture and would have preferred to see a range of alternative options prepared for the Executive to consider which included one taking the grant into account but maintaining the authority’s original spending commitment.  The Chief Executive and Director of Customer and Community Services explained the current benefit process and outlined how the new scheme would work.  He explained that pensioners on benefit would continue to receive a 100% discount and that other individuals would get a 90% discount, i.e. everyone would pay a least 10% Council Tax unless they were ‘protected’ pensioners.  He explained that the Council had a separate scheme to protect extreme hardship cases and that each situation would be reviewed on its individual merits.

Councillor G Jones sought clarification on the potential for other options.  The Director of Finance and Support Services reminded Members that the Government grant was only available for one year and of the impact this had on pensioners.  She explained that the government grant would help protect the vulnerable.

Councillor J Ranger referred to the very small number of people who had responded to the consultation exercise.  He reminded Members that a new scheme would come into operation the following year and of the need not to make things too complicated.  He supported the suggestion of limiting council tax liability to 8.5% for everyone in recognition that, if there were hardship cases, then these could be looked at individually.  Councillor J Ranger reminded Members that ‘protected’ pensioners would receive 100% discount.

Councillor  ...  view the full minutes text for item 444