Issue - meetings

Report No:   CAB/SE/16/065

Portfolio Holder: Ian HoulderLead Officer: Rachael Mann

RECOMMENDED TO COUNCIL: (20 December 2016)

That no change be made to the current Local Council Tax Reduction Scheme or Council Tax Technical changes levels for 2017/2018, as detailed in Section 5 of Report No: CAB/SE/16/065.

The Cabinet considered Report No: CAB/SE/16/065, which sought approval for the Local Council Tax Reduction Scheme and Technical Changes 2017/2018.

Councillor Ian Houlder, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of the Cabinet, including background to the Local Council Tax Reduction Scheme (LCTRS) which was introduced from 1 April 2013, together with a summary of the previous year review (2015/2016) in respect of the behavioural, administrative and financial impacts of the LCTRS and council tax technical changes levels.

Continuing the current LCTRS and approach to technical changes would create a ‘cost neutral scheme’ for the council, notwithstanding reductions in the Local Council Tax Support Grant, which would have to be absorbed elsewhere in the Council’s 2017/2018 budget setting process. Changes could be made to the maximum benefit amount and technical changes, however, both of these would carry with them significant behavioural impacts which could affect overall yield.

Members noted that national research showed that any further increase in the amount payable for working age LCTRS customers could increase administration costs and have a detrimental effect on collection rates.  . As both the LCTR scheme and council tax technical changes were discount and exemption based, any proposed changes had a direct impact on the Council’s tax base for council tax setting purposes. These proposals would therefore feed into the Tax Base setting process during the autumn 2016 (see minute 285 below).

The Cabinet considered that  based on the overall findings of the scheme review outlined in sections 2 and 3 of the report, the recommendation is to continue the LCTR scheme in its current form, including applying the current level of applicable amounts[1] within the LCTRS, for 2017/2018 was acceptable.  It also agreed to recommend to Council the continuation of the 2016/2017 levels for second homes and empty properties, as set out in table 1 of the report.

RECOMMENDED TO COUNCIL:

That no change be made to the current Local Council Tax Reduction Scheme or Council Tax Technical changes levels for 2017/2018, as detailed in Section 5 of Report No: CAB/SE/16/065.