Agenda item

Report number: COU/WS/20/015

 

A.      Referrals from Cabinet: 10 November 2020

 

1.       West Suffolk Local Council Tax Reduction Scheme (LCTRS) 2021 to 2022

Portfolio holder: Councillor Sarah Broughton

 

2.       Council Tax Technical Changes 2021 to 2022

Portfolio holder: Councillor Sarah Broughton

 

3.       Council Tax Base for Tax Setting Purposes 2021 to 2022

Portfolio holder: Councillor Sarah Broughton

 

B.      Referrals from Cabinet: 8 December 2020

 

(These referrals have been compiled before the meeting of Cabinet on 8 December 2020 and are based on the recommendations contained within each of the reports listed below.  Any amendments made by the Cabinet to the recommendations within these reports will be notified to members in advance of the meeting accordingly.)

 

1.       Delivering a Sustainable Medium-Term Budget

Portfolio holder: Councillor Sarah Broughton

 

2.      Financial Resilience (September 2020)

Portfolio holder: Councillor Sarah Broughton

Council considered the referrals report of recommendations from Cabinet, as contained within report number: COU/WS/20/015.

 

A.      Referrals from Cabinet: 10 November 2020

 

1.      West Suffolk Local Council Tax Reduction Scheme (LCTRS) 2021 to 2022

 

Approval was sought for the West Suffolk Local Council Tax Reduction Scheme (LCTRS) 2021 to 2022.

 

Each year the Council was required to review its LCTRS. Report number CAB/WS/20/067 set out the various considerations with regard to the application of the scheme in 2021 to 2022.  Given these considerations, Cabinet was recommending to continue with the current scheme in 2021 to 2022, before undertaking a more comprehensive review early next year that took into account learning from Covid-19. At this point a range of options may be considered for possible consultation.  This would also bring stability to customers’ household budgets as they recovered or managed the impact of Covid-19.

 

Councillor Sarah Broughton, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Council.

 

On the motion of Councillor Broughton, seconded by Councillor Mike Chester, it was put to the vote and with the vote being 52 for the motion, none against and 3 abstentions, it was

 

Resolved:

 

That:

1.           the review of the Local Council Tax Reduction Scheme (LCTRS) for 2020 to 2021, as outlined in Report number: CAB/WS/20/067, be noted; and

 

2.       the retention of the existing Local Council Tax Reduction Scheme (LCTRS) for 2021 to 2022, be agreed.

 

 

2.      Council Tax Technical Changes 2021 to 2022

 

(The following local non-pecuniary interests were declared by the following members:

 

·         Councillor John Griffiths as a director and shareholder of a company that rented out properties in the district. He remained in the meeting but abstained from the vote.

·         Councillor Beccy Hopfensperger as the owner of an empty property located within the district. She remained in the meeting but abstained from the vote.

·         Councillor Paul Hopfensperger as the owner of an empty property located within the district. He remained in the meeting but abstained from the vote.

·         Councillor Victor Lukaniuk as a landlord of properties in the district. He remained in the meeting and voted thereon.

·         Councillor Margaret Marks as a landlord of properties in the district. She remained in the meeting but abstained from the vote.

·         Councillor Karen Soons as the owner of an empty property located within the district. She remained in the meeting but abstained from the vote.

·         Councillor Don Waldron as the owner of an empty property located within the district. He remained in the meeting but abstained from the vote.)

 

Approval was sought for the West Suffolk Council Tax Technical Changes Scheme for the 2021 to 2022 financial year.

 

Since April 2013, councils had the discretion to charge up to 100 per cent for some previously exempt properties, to charge up to 100 per cent in respect of furnished empty properties (usually referred to as holiday homes), to charge up to 100 per cent in respect of second homes and to charge up to 50 per cent (100 per cent from April 2019) empty homes premium for properties that had been empty for over two years. These discretions, which were provided under sections 11a and 11b of the Local Government Finance Act 1992, were described in this and previous council reports as the ‘Council Tax Technical Changes’.

 

Councillor Sarah Broughton, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Council including that contained within Section 2 of Report number: CAB/WS/20/068 (and reproduced in Report number: COU/WS/20/015), was a table setting out the current scheme for continuation from April 2021. No changes had been proposed, or recommended by Cabinet, to the existing scheme.

 

Properties that fell into specific categories and did not attract the empty homes premium were listed in paragraph 2.3 of Report number: COU/WS/20/015.

 

Some concern was expressed that the 100 per cent discount for an empty, substantially unfurnished property only applied for one week as it was sometimes difficult for landlords to move new tenants in within such a short timescale. Other questions were asked in connection with the exemption that applied to properties that were empty because of specific circumstances such as the owner being in care, prison or being the executor of an estate where probate had been granted (time limited). In response, Councillor Broughton explained that this was not a newly proposed scheme and the premiums and exemptions that applied to empty properties had been in place for some time. Landlords were usually given at least a month’s notice of an existing tenant leaving, which should be sufficient time to seek a new tenant.  The scheme was about getting empty properties back into use as quickly as possible.

On the motion of Councillor Broughton, seconded by Councillor Sara Mildmay-White, it was put to the vote and with the vote being 36 for the motion, 12 against and 7 abstentions, it was

 

Resolved:

 

That the continuation of the West Suffolk Council Tax Technical Changes Scheme, as set out in Section 2 of Report number CAB/WS/20/068, be approved, and, that the Special Provision Discounts and Premiums continue to apply until such time as any amendments are made.

 

 

3.      Council Tax Base for Tax Setting Purposes 2021 to 2022

 

Approval was sought for the council tax base for tax setting purposes for the 2021 to 2022 financial year.

 

The council tax base was the total taxable value at a point in time of all the domestic properties in the council’s area. It was a yearly calculation and represented the estimated number of chargeable dwellings after allowing for exemptions and discounts, projected changes in the property base and after applying an estimated collection rate. The council tax base was used in the calculation of council tax, further details regarding which was set out in Report number: CAB/WS/20/069.

 

Councillor Sarah Broughton, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Council.

 

On the motion of Councillor Broughton, seconded by Councillor Patrick Chung, it was put to the vote and with the vote being 53 for the motion, none against and 2 abstentions, it was

 

Resolved:

 

That:

1.           The tax base for 2021 to 2022, for the whole of West Suffolk be 55,339.97 equivalent Band D dwellings, and for each of the predecessor areas be: Forest Heath 18,572.56 and St Edmundsbury 36,767.41, as detailed in paragraph 2.6 of Report number CAB/WS/20/069.

 

2.           The tax base for 2021 to 2022 for the different parts of its area, as defined by parish or special expense area boundaries, be as shown in Appendix 3 of Report number CAB/WS/20/069.

 

3.       The Assistant Director (Resources and Performance) be given delegated responsibility to make changes to the tax base figures as a result of any Government announcements pertaining to local council tax support as detailed in paragraph 2.5 of Report number CAB/WS/20/069.

 

B.      Referrals from Cabinet: 8 December 2020

 

Following the publication of the agenda and papers for this meeting, which took place before the Cabinet meeting was held on 8 December 2020, the Chair confirmed that no changes had been made to the recommendations contained in the referral report.

 

1.      Delivering a Sustainable Medium-Term Budget

 

Approval was sought for budget proposals for inclusion in the Council’s medium-term financial plans.

 

In July 2020, Cabinet had agreed proposed next steps and principles for future financial planning across the medium term (Report number: CAB/WS/20/043).  The approach was designed to enable the Council to respond effectively to changing circumstances while maintaining a medium-term focus on the Council’s financial sustainability.

 

Councillor Sarah Broughton, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Council, including thanking the Performance and Audit Scrutiny Committee for its thorough consideration of the proposed key budget assumptions, as set out in Section 2 and Table 1 of Report number: PAS/WS/20/019) and for subsequently recommending their approval to Cabinet and Council.

 

In response to a question in connection with the Council’s levels of reserves in the different reserve categories, Councillor Broughton informed Council that a written reply would be provided. The response would be circulated to all members.

 

The recommendations contained in the report, together with any further recommendations emanating from the Performance and Audit Scrutiny Committee and Cabinet in the coming weeks, would be incorporated into the budget setting process, the composite report for which would be considered by Cabinet and Council in February 2021.

 

On the motion of Councillor Broughton, seconded by Councillor Clive Springett, it was put to the vote and with the vote being 52 for the motion, none against and 3 abstentions, it was

 

Resolved:

 

That the proposals as detailed in Section 2 and Table 1 of Report number PAS/WS/20/019, be included in the medium-term financial plans.

 

 

2.      Financial Resilience (September 2020)

 

Approval was sought for the Financial Resilience Report for the first half of the 2020 to 2021 financial year from 1 April 2020 to 30 September 2020.

 

Councillor Sarah Broughton, Portfolio Holder for Resources and Performance, drew relevant issues to the attention of Council.

 

On the motion of Councillor Broughton, seconded by Councillor Marion Rushbrook, it was put to the vote and with the vote being 52 for the motion, 1 against and 2 abstentions, it was

 

Resolved:

 

That the Financial Resilience Report (September 2020), as contained in Report number: FRS/WS/20/003, be approved.