Agenda item

Further to Minute No. 29 of the meeting held on 9 October 2014, the Cabinet considered the report of the Head of Corporate Finance and ICT which provided details of feedback received on the recent consultation exercise regarding the proposed amendments to the Council Tax Reduction Scheme for 2015/16 and details of the updated Council Tax Base for 2015/16.

Decision Made:

That:

(1)                   the Council be recommended to approve and adopt the revisions to the current Council Tax Reduction Scheme for 2015/16 summarised in paragraph 3 of the report, to take effect from 1st April 2015;

(2)       the consideration of any minor changes in legislation/guidance in relation to the 2015/16 Council Tax Reduction Scheme be delegated to the Head of Corporate Finance and ICT in consultation with Cabinet Member - Performance and Corporate Services and that any significant changes in such legislation/guidance and any further recommendations be reported to Council on 22January 2015;

(3)       the Head of Corporate Finance and ICT be granted delegated authority to consider and implement any minor textual changes to the Council Tax Reduction Scheme for 2015/16;

(4)       the Council be recommended to approve the Council Tax Base 2015/16 as set out in Annex B of the report; and

(5)       the Council be recommended to approve the payment of grants to the Parish Councils in 2015/16 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

Each financial year the Council must consider whether to revise or replace its Local Council Tax Reduction Scheme. The Council must approve and adopt the 2015/16 Council Tax Reduction Scheme by 31 January 2015 to take effect from 1 April 2015.

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.

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 and the introduction of Universal Credit.

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 Council and for each Parish Area for 2015/16.

Alternative Options Considered and Rejected:

Not to revise the 2015/16 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 this would not match the applicable amounts and personal allowances for Housing Benefit and Universal Credit calculation.

To have a more generous Local Council tax Reduction Scheme. This would result in reduced income to the Council and would require further budget savings against services in order to achieve a balanced budget.

The Council could determine to reduce the support to Parish Councils in 2016/17 or a future year which would provide savings to the Council of £94k per annum. A majority of Parish Councils have already met to consider their 2015/16 Budget and precept requirements which would make a change in 2015/16 more difficult.