Agenda item

A report from the Executive Director of Finance, Resources and Customer Services is attached. (Key decision – reference number 4588)

(Report No.137)

(8.30 – 8.35 pm)

Appendix E will be circulated “to follow”

Councillor Dino Lemonides (Cabinet Member for Finance and Efficiency) introduced the report of the Executive Director of Finance, Resources and Customer Services (No.137) recommending the Council Tax Support Scheme for 2018/19. 

NOTED

1.               That the report recommended the Council Tax Support Scheme for 2018/19, maintaining the current minimum contribution for working age households not in a protected group at 26.5%, introducing an income threshold for universal credit claimants and a further protected group for care leavers.

2.               That in recognition of the difficulties faced by local households, the Council introduced and had maintained a discretionary Council Tax Hardship Scheme, as detailed in paragraph 4.3 of the report. During the financial year 2017/18, the Council had awarded more than £100,000 in small grants.

3.               Members expressed their appreciation and support to the Cabinet Member for Finance and Efficiency and his officers for maintaining the support for vulnerable groups within the scheme and, the introduction of a further protected group for care leavers. The Council would continue to monitor the way this scheme had worked for local people and would consider future options.

4.               The impact of the Government’s welfare reforms and the significant financial pressures being faced by individual residents. The Council Tax Hardship Scheme was discussed as outlined in the report, and the potential financial pressures on the Council in meeting demand of residents in need of such support now and in the future.

5.               The detail of the Council Tax base 2018/19 as set out in Appendix D of the report; and, the Business Rate Base 2018/19 outlined in Appendix E of the report. The calculations and assumptions set out in Appendix D resulted in a Band D equivalent tax base for 2018/19 of 96,005 properties, an increase of 962, resulting in an increase of £1.4m.

6.               That the introduction of the London business rate pool by the Government would give a share to the Council of 64% of the estimated business rate income for 2018/19; the figure was currently 30%.

7.               Members’ attention was drawn to the main elements set out in Appendix E including the Discretionary Rate Relief Policy and its impact. The Policy would ensure the Government funded reductions for small businesses, pubs and those businesses facing the steepest increases in their business rates bills, as a result of the 2017 revaluation were maximised. During 2017/18 relief was worth over £1m for local businesses who were struggling, with over £500,000 available for next year.

8.               That a “Money Day” was being held on 25 January 2018 with the Council working jointly with the Enfield Job Centre and Citizens’ Advice Bureau to provide budgeting advice to local residents.

Alternative Options Considered: NOTED, that the Council had considered the alternative option of maintaining the current council tax support scheme for Universal Credit cases but as Universal Credit included working tax credit the range of income levels within the Universal Credit award would increase the cost of the council tax support scheme considerably.

RECOMMENDED TO COUNCIL

1.               That Council agrees the Local Council Tax Support Scheme for 2018/19 to provide financial support for households on low incomes in paying their Council Tax taking into account the consultation responses (Appendix C to the report) and the Equality Impact Assessment (Appendix B to the report).

For the 2018/19 scheme:

·       the minimum contribution for working age households not in a protected group would be maintained at 26.5%.

·       the maximum earned income for Universal Credit claimants to receive council tax support would be £1264.99 net per month for 2018/19 (This taper was decided as no-one was currently entitled to Council Tax Support where their income was more than £1264.99 per month)

·       Care leavers up to the age of 25 would be added to the existing protected groups.

·       Administrative changes set out in paragraph 6.3 be incorporated into the scheme to improve service delivery

2.               Pursuant to this report (as detailed in Appendix D for full detail) and in accordance with the Local Authorities (Calculation of the Tax Base) (England) Regulations 2012, the amount calculated by the London Borough of Enfield as its Council Tax Base for 2018/19 should be 96,005 Band D equivalents.

3.               Agree the Department for Communities and Local Government NNDR1 Business Rate base return for 2018/19 (Appendix E of the report referred).

4.               Agree the amendment to the discretionary rate relief scheme as set out at 2.2 of Appendix E to the report.

5.               Delegate authority to the Executive Director of Finance, Resources and Customer Services, in liaison with the Cabinet Member for Finance and Efficiency, to agree minor amendments to the 2017-19 scheme and to agree the 2019-21 scheme at the appropriate time.

Reason: The recommendations follow an assessment of options, experience of operating the scheme to date, the Equality Impact Assessment and the consultation. The recommended changes introduced in 2014 for defined protected groups and the further extension of care leavers under the Equality Impact Assessment support the Council’s aims to build strong, stable communities and were recommended to be continued next year.  

(Key decision – reference number 4555)