Issue - meetings

The Director of Finance and Support Services submitted a report that considered the latest available information around the current local Council Tax Reduction Scheme at East Herts and whether any changes to the scheme should be considered for 2016/17.

The Director provided a detailed breakdown of the origins for the 2016/17 Council Tax Reduction Scheme.  Members were advised that the report had been written prior to the recent budget announcements and the Committee was also reminded that the Authority collected Council Tax on behalf of Hertfordshire County Council, Hertfordshire Police Authority and Town/Parish Councils.

The Director detailed how Council Tax was set each year and she referred to the cost of collection as well as the reductions in Government Grant received by the Authority.  Members were referred to the changes that had impacted on residents who experienced significant financial hardships.

The Director advised that there was no prescribed time for consultation in respect of the scheme.  She emphasised that there was a complex and complicated model to be applied.  Members were given a comprehensive breakdown of the issues they should bear in mind when considering changes to the scheme.  The Director concluded by setting out in detail the options Members could consider in respect of the 2016/17 Council Tax Reduction Scheme.

In response to comments from Councillors M Stevenson and J Cartwright, the Director advised that it was very difficult to model or make predictions regarding the options detailed in the report.  She stated that other Authorities had different schemes as they were in a different place to East Herts in terms of affordability and their financial positions. 

The Executive Member for Finance and Support Services added his explanation as to why this report was before Members.  He stated that it was not because there was any aspiration to radically change the scheme due to the potential risks.  He believed that the status quo was the best way forward.

The Director responded to a query from Councillor Stevenson by advising that the overall level of revenue support grant continued to reduce and there had to be an assessment of affordability for all options for a Council Tax Reduction Scheme.

The Director reminded Members that the Authority had to consult on a specific scheme for 2016/17 if any changes to the current scheme were made.  Members supported the retention of the status quo for 2016/17 and asked Officers to report back to the Committee on 22 March 2016 to explore possible options for change in 2017/18 and onwards.

RESOLVED – that in respect of the 2016/17 Council Tax Reduction Scheme, the Committee supported the retention of the status quo for 2016/17 and agreed that Officers report back to the Committee on 22 March 2016 to explore possible options for change in 2017/18 and onwards.