Issue - meetings

Report No: CAB/FH/16/060

Portfolio Holder: Stephen Edwards            Lead Officer: Rachael Mann

RECOMMENDED TO COUNCIL: (21 December 2016)

That no change be made to the current Local Council Tax Reduction Scheme or Council Tax Technical Changes for 2017/2018, as detailed in Section 5 of Report No: CAB/FH/16/060.

(Report No: CAB/FH/16/060)

Councillor Stephen Edwards, Portfolio Holders for Resources and Performance, presented this report which set out recommendations on the 2017/2018 Local Council Tax Reduction Scheme (LCTRS) and technical changes levels from 1 April 2017.

Councillor Edwards drew relevant issues to the attention of the Cabinet, including background to the LCTRS which had been 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.

In relation to the scheme for 2017/2018, continuing the 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 significant behavioural impacts which could affect overall yield.  National research also 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.

Therefore, based on the overall findings of the Scheme review, as outlined in Section 2 and 3 of Report No: CAB/FH/16/060, it was recommended to continue the LCTRS in its current form, including applying the current level of applicable amounts within the LCTRS for 2017/2018.

It was also being recommended to continue with the 2016/2017 levels for second homes and empty properties, as set out in Table 1 of Report No: CAB/FH/16/060.

With the vote being unanimous, it was

RECOMMENDED TO COUNCIL: (21 December 2016)

That no change be made to the current Local Council Tax Reduction Scheme or Council Tax Technical Changes for 2017/2018, as detailed in Section 5 of Report No: CAB/FH/16/060.