Agenda item

(Finance Portfolio Holder) To consider the attached report (C-011-2015/16).

(1)        That a public consultation exercise on the Local Council Tax Support Scheme for 2016/17 be undertaken between August and October 2015;

(2)        That the following elements of the scheme be approved for consultation purposes:

            (a)        a general principle be that the Local Council Tax Support scheme for         2016/17 should aim to be cost neutral for the Council;

            (b)        to seek views on alternative funding options for the Local Council Tax         Support Scheme if the Scheme was not cost neutral;

            (c)        the maximum Local Council Tax Support for people of working age be        reduced from 80%; and

            (d)        that a Minimum Income Floor for Self Employed Persons be set in line       with other Welfare Reforms.

The Finance Portfolio Holder presented a report concerning the Local Council Tax Support Scheme for 2016/17.

The Portfolio Holder reminded the Cabinet that the Council had adopted the current Local Council Tax Support Scheme for 2015/16 on 16 December 2014. Consideration now had to be given to the scheme for the financial year 2016/17 which would require approval by the Council in December 2015. The Council was under a statutory obligation to undertake a public consultation on the Council’s scheme each year before the scheme was adopted by the Council. In view of the timescales, it would be necessary for the consultation to be undertaken between August and October 2015 to ensure that the Authority would have consulted correctly and that the Council could adopt the scheme at its meeting in December 2015. The Cabinet was requested to approve the four elements for consultation, namely: that the Scheme should be cost neutral for the Council; views on alternative funding for the Scheme if it was not cost neutral; whether the maximum support for people of working age should be reduced from the current level of 80%; and whether a minimum floor for the self-employed be set for the Scheme in line with other welfare reforms.

It was suggested that the Council could work in partnership with local Councils to raise the awareness of and responses to the consultation. The Portfolio Holder acknowledged that, historically, the level of responses to this consultation had been low, and the Council was happy to work with all of its partners to increase public awareness of the consultation. It was highlighted to the Portfolio Holder that the Governance Select Committee had previously suggested items such as this should be raised at the next available meeting of the Local Councils Liaison Committee.

Decision:

(1)        That a public consultation exercise on the Local Council Tax Support Scheme for 2016/17 be undertaken between August and October 2015;

(2)        That the following elements of the scheme be approved for consultation purposes:

            (a)        a general principle be that the Local Council Tax Support scheme for         2016/17 should aim to be cost neutral for the Council;

            (b)        to seek views on alternative funding options for the Local Council Tax         Support Scheme if the Scheme was not cost neutral;

            (c)        the maximum Local Council Tax Support for people of working age be        reduced from 80%; and

            (d)        that a Minimum Income Floor for Self Employed Persons be set in line       with other Welfare Reforms.

Reasons for Decision:

The judgement given in the case of R v London Borough of Haringey on 29 October 2014, highlighted the requirement for Local Authorities to consult on their scheme annually, whether they intended to make any changes to their Local Council Tax Support Scheme or not. The judgement also made clear that in their consultation, Local Authorities also needed to consult on how the scheme was to be funded. Respondents should be given the opportunity to give their views on whether the scheme should be cost neutral, or, if not, whether the scheme should be funded by making cuts to the scheme, increasing the Council Tax, cutting other Council services, or using Council reserves. The Council’s scheme had to be agreed by the Council and be in place by 31 January 2016.

In view of the timescales, the consultation also needed to be undertaken between August and October 2015. If the consultation was commenced any later than this, then it would not be possible to complete the consultation and amend the scheme in time for executive approval by the Cabinet on 3 December 2015.

Other Options Considered and Rejected:

To not carry out a consultation exercise for the Local Council Tax Support Scheme for 2016/17, or that the consultation should only be carried out on potential changes to the scheme, not the funding of the scheme. However, with reference to the judgement in R v London Borough of Haringey, the Council’s Scheme could be subjected to a judicial review.