Agenda item

Report attached.

Councillor Joyce Plummer, Portfolio Holder Resources, reported on a proposal to commence a public consultation on plans to revise Hyndburn Council’s Council Tax Support Scheme for 2020/21.  It was envisaged that the outcome of the consultation would be reported to the Council in January 2020.

Councillor Tony Dobson enquired about the possible provision of an All Member Briefing to consider the implications of the Funding Options highlighted.

Approval of the report was not deemed a key decision.

Reasons for Decision

In 2020/21, Council Tax Support (CTS) will be in its seventh year, having been devolved to Local Authorities nationally in 2013 following the abolition of Council Tax Benefit.  In 2013, Local Authorities were given a broad remit to design their own local CTS schemes for working age claimants, with pension age claimants still subject to a national scheme allowing up to 100% CTS.

Prior to 2013, Council Tax Benefit was funded in full by the Government: when Council Tax Support was introduced, the Government reduced Hyndburn’s grant by 10% of the previous year’s expenditure for all claimants and rolled future funding into the Revenue Support Grant.

Along with the majority of other Local Authorities, the Council introduced a minimum payment level for working age CTS claimants in 2013/14.  The scheme also included four other changes designed to make the scheme fairer and to provide streamlined administration.  The Hyndburn scheme otherwise mirrored the old Council Tax Benefit scheme.

Subsequent changes to Hyndburn’s CTS schemes have included provisions to mirror national changes to Housing Benefit and Universal Credit and minimum payment level increases from 20% to 27% in 2016/17 and to 30% from 2017/18.  The Council’s scheme has been reviewed annually to ensure that it remains sustainable and the minimum payment levels remain at 30% today.

Council Tax Support cannot be considered in isolation: any changes to the scheme must be viewed in the context of national changes to benefits, (Universal Credit in particular), overall Council Tax increases (which increase CTS expenditure) and the end of the Revenue Support Grant from 2020/21.  In light of uncertainty around the Local Government Spending Review and the UK’s exit from the European Union, it is considered prudent at this point to review the Council’s CTS scheme and to conduct a public consultation on potential changes.

The report included further information on the following:

• Council Tax Increases;
• Universal Credit;
• Revenue Support Grant and Council Funding;
• Consultation Proposals:
  • Funding Option 1: Increase the minimum payment level;
  • Funding Option 2: Increase Council Tax levels for all taxpayers;
  • Funding Option 3: Making savings by cutting or reducing other services;
• Scheme Administration Changes; and
• Impact of CTS Scheme Changes and Wider Considerations.

Alternative Options considered and Reasons for Rejection

The Council could choose not to consult on the Council Tax Support scheme and as such no changes could be made in 2020/21.  This would not allow the Council to consider the views of the local population or interested parties and would limit the authority’s options to fund the Council Tax Support scheme for 2020/21 to either cutting services or raising Council Tax levels.

This report requests only that a consultation is conducted at this stage and any eventual changes to the CTS scheme will be considered in light of responses received.  The option to continue with the current scheme remains after consultation.

Resolved                      (1)  That Cabinet authorises the Deputy Chief Executive to commence a public consultation on plans to revise the current Council Tax Support Scheme from April 2020.

(2)  That Cabinet notes that the consultation will run for 12 weeks from the 13^th September 2019 to 5^th December 2019 and will guide the final recommendations to be placed before Full Council for approval of the Council Tax Support Scheme by 31^st January 2020.