Agenda item

Report attached.

The Leader of the Council submitted a report seeking approval to commence a public consultation on plans to revise Hyndburn Council’s Tax Support Scheme for 2017/18.  The following documents were attached to the report:-

Appendix 1      -   Council Tax Support Consultation Strategy 2017/18

Appendix 2      -   Proposed Council Tax Support Scheme April 2017

Appendix 3      -   Council Tax Support Consultation 2017/18 Customer First Analysis

                           June 2016

Approval of the report was not deemed a key decision.

Reasons for Decision

1.         Council Tax Benefit had been abolished nationally on 31^st March 2013 and replaced with Local Council Tax Support Schemes (LCTS) which were designed and implemented by billing authorities.  After extensive consultation the Council had decided to implement a scheme that required all working age claimants of Council Tax Support to contribute at least 20% towards their annual Council Tax bill, with the Council providing the remaining 80%.  The same support rate was maintained in 2014/15 and 2015/16 despite a reduction in the Government Revenue Support Grant.

2.         In preparation for the 2016/17 LCTS scheme, the Council consulted for a second time on options to alter Hyndburn’s scheme, as maintaining maximum support levels at 80% was no longer sustainable without impacting on the provision of other services or increasing Council Tax for all taxpayers.  The consultation presented three main options to residents.  Following that consultation, the 2016/17 Council Tax support scheme for Hyndburn was introduced with a new maximum support level for working age claimants of 73%.

3.         Due to the Government’s commitment to substantially reduce public expenditure over the next four years, maintaining the support level at 73% would again no longer be sustainable.  The Council therefore intended to consult and it was  proposed that the three main funding options offered to residents, with the added facility to suggest any alternatives they would like to be considered, should be:-

·         Reduce maximum support levels for CTS claimants

·         Raise Council Tax levels for all liable taxpayers

·         Make savings by cutting or reducing other services

In addition, residents would also be consulted on a number of assessment criteria for Council Tax Support claims to be changed to bring the scheme in line with changes being made on a national level to Housing Benefit Regulations.

Alternative Options considered and Reasons for Rejection

The Council could choose not to consult on its options and the current scheme with a 73% subsidy would continue.  That would not allow the views of the local population or interested parties to be considered and would limit the Council’s options to fund the Council Tax Support scheme for 2017/18 to either cutting services or raising Council Tax levels.

Resolved                           (1)   That the Deputy Chief Executive be authorised to commence a public consultation on plans to revise the current Council Tax Support Scheme from April 2017;  and,

                                (2)   That it be noted that the consultation would run for 12 weeks from 25^th July to 14^th October 2016 and would guide the final recommendations to be placed before Full Council for approval of the Council Tax Support Scheme by 31^st January 2017.