Decision details

The Cabinet considered the report of the Head of Corporate Finance and ICT which provided an update on the review of the current Council Tax Reduction Scheme and options on whether the scheme should be revised or replaced with another scheme for 2014/15; details of a revised scheme which uprates the applicable amounts and personal allowances for non-pensioner claimants; details of the Council Tax technical change discount for unoccupied properties from 1April 2014; and the proposed updated Council Tax Base for both Sefton Council and for each Parish Area for 2014/15.

The report contained the following annexes:

Annex A:       Sefton MBC Local Council Tax Reduction Scheme 2014/15

Annex B:       Council Tax Base Report 2014/15

Decision Made:

That:

(1)                   the Head of Corporate Finance and ICT be authorised to publish and consult upon the draft revised Council Tax Reduction Scheme for 2014/15, as set out in Annee A of the report, and to submit a report the outcome of the consultation exercise to the Cabinet meeting on 16 January 2014;

(2)       the Head of Corporate Finance and ICT be authorised to consider any minor changes in legislation/guidance in relation to the Council Tax Reduction Scheme 2014/15, in consultation with the Leader of the Council and Cabinet Member – Performance and Corporate Services, and that any significant changes in such legislation/guidance and any further recommendations be reported to the Cabinet meeting on 16 January 2014;

(3)       the Council be recommended to approve:

(i)         the change to the discount for empty and unoccupied properties to take effect from 1 April 2014 as set out in paragraph 4 of the report;

(ii)        a budget of £150,000 for exceptional hardship payments in 2014/15.

(iii)       the Tax Base for Sefton Council and for each Parish Area for 2014/15 as set out in Annex B of the report; and

(iv)       the payment of grants to the parish councils in 2014/15 to compensate them for the cost of the Council Tax Reduction Scheme as set out in Annex B of the report.

Reasons for Decision:

Local Council Tax Reduction Scheme

By law each financial year, the Council must consider whether to revise or replace its Local Council Tax Reduction Scheme. Any revision must be made by 31 January in the preceding financial year to that which it is to take effect.

The 2013/14 local scheme has only been in operation since April 2013 and the objectives of the scheme and its impact continue to be monitored and evaluated. Any decision to revise or replace the scheme would require compliance with statutory provisions in accordance with The Local Government Finance Act 2012 (Chapter 17, Schedule 4).

Each year state benefits for working age people are increased by the Government. These increases, because they would result in a higher income for anyone receiving benefits, would subsequently result in a reduction in the amount of means-tested council tax reduction received unless the applicable amounts and personal allowances are also increased. This increase is referred to as uprating and a small revision is required to the existing scheme from 2014/15 and the Council is required by law to publish and consult on this proposed change.

The proposed revisions to the Council Tax Reduction Scheme ensure that those householders on the lowest incomes are not adversely affected by the Government annual uprating of state benefits.

Change to Council Tax Discount for Empty Property

The Council at its meeting held on 28 February 2013 agreed a budget proposal for 2014/15 which requires a change to council tax charges for vacant properties (unoccupied and substantially unfurnished) from the 1 April 2014.

Council Tax Base

In accordance with the Local Authorities (Calculation of Council Tax Base) (England) Regulations 1992, as amended, the Council is required to set a tax base for both Sefton and for each Parish Area for 2014/15. This can only be achieved once the Local Council Tax Reduction Scheme and change to council tax discount for vacant properties had been approved.

Alternative Options Considered and Rejected:

Not to revise the 2013/14 Council Tax Reduction Scheme in line with Department for Work and Pensions annual uprating for state benefits, applicable amounts and personal allowances. This would mean non-pensioner claimants would see a reduction in the amount of means-tested council tax reduction and it would not match the applicable amounts and personal allowances for Housing Benefit calculation.