Agenda item

Report of the Head of Corporate Resources

The Cabinet considered the report of the Head of Corporate Resources that provided details of the consultation proposing various options for revising the existing Council Tax Reduction Scheme and making recommendations to revise the scheme accordingly for 2018/19; that recommended an updated Council Tax Base for Sefton Council and each Parish Area for 2018/19; and noting that the proposed changes did not affect any person of state pension credit age.

Cabinet Members thanked staff for their work on this matter.

Decisions Made: That:

(1)      the contents of the Council Tax Reduction Scheme 2017/18 review be noted;

(2)      the outcomes of the consultation process and the Equality Impact Assessment (EIA) both of which have informed the recommendations for the Council Tax Reduction Scheme 2018/19, be noted;

(3)      the existing Council Tax Reduction Scheme, as indicated in Section 5 of the report (Options 1 to 6), with effect from 1 April 2018, be revised and that this be recommended to the Council on 25 January 2018;

(4)      authority be delegated to the Head of Corporate Resources to consider and implement any minor textual changes to the Council Tax Reduction Scheme 2018/19; and

(5)      the Council be recommended to approve the Council Tax Base for 2018/19 for Sefton Council and each Parish Area, as set out in Annex A of the report.

Reasons for Decision:

CouncilTax ReductionScheme

Each financialyear theCouncil mustconsider whetherto reviseor replaceits CouncilTax ReductionScheme. TheCouncil mustapprove andadopt the2018/19 Council TaxReduction schemeby 31January 2018,to takeeffect from1 April 2018.

Anydecision torevise orreplace thescheme wouldrequire compliancewith statutory provisionsin accordancewith TheLocal GovernmentFinance Act2012 (Chapter17), schedule 4.

There aretwo major drivers for changing the Council Tax Reduction Scheme (CTR) in 2018/19. Firstly, the Government is making significant welfare reform changes between April 2016 and April 2019 and secondly, the Full Service roll out of Universal Credit from October 2017. As the CTR Scheme operates within these frameworks, these changes will have an impact upon the operation and cost of the Council’s local scheme.

As a result of these changes the Council has reviewed its local scheme with the following key objectives:-

·       Align key welfare reform changes to the CTR scheme;

·       Maintain fairness, consistency and at the same time cost of the CTR scheme;

·       Work more effectively with Universal Credit, recognising that UC makes provision for children, disability, housing and caring responsibilities; and

·       Deliver administrative efficiencies where possible in support of the scheme.

Council Tax Base

Inaccordance withthe LocalAuthorities (Calculationof CouncilTax Base) (England) Regulations2012, theCouncil isrequired toset a tax basefor both Sefton Council and foreach Parish Area for 2018/19.

Alternative Options Considered and Rejected:

The Council could choose not to make any revisions to the current scheme. However, by maintaining the current scheme and not bringing it in line with key welfare reform, changes would have an impact on working age claimants, in particular those claiming Universal Credit. In addition, keeping the current scheme will have software and administrative implications.