Agenda item

A report from the Director of Finance is attached. (Note: Appendix E – Business Rate Base 2019-20 will be circulated “to follow”) (Key decision – reference number 4762)

(Report No.131)

(7.30 – 7.40 pm)

Councillor Nesil Caliskan (Leader of the Council) introduced the report of the Director of Finance (No.131) on the Council Tax Support and Collection Fund.

NOTED

1.            That Appendix E to the report had been circulated as a “to follow” document.

2.            That the report recommended the Council Tax Support Scheme for 2019/20 remained unchanged from the 2018/19 scheme.

3.            That paragraph 3.4 of the report addressed the impact of the roll out of Universal Credit.

4.            The proposed statutory/administrative amendment to the scheme for 2019/20 as set out in section 5 of the report.

5.            That section 6 and Appendix C of the report outlined a change in legislation which allowed the current Empty Homes Premium to be amended for council tax and recommended an increase to 100%. This would further encourage these properties to be brought back into use.

6.            That the report recommended that the Council agree its Council Tax Base for 2019/20 at 97,074, as set out in Appendix D of the report. It was recommended that the overall collection percentage for 2019/20 be increased to 98% reflecting the higher overall collection rate. Members praised the high collection rates and acknowledged the excellent work of Geoff Waterton and his team.

7.            That section 8 and Appendix E of the report recommended that the Council agreed the Business Rate estimated income for 2019/20 and amendments to the Discretionary Rate Relief Policy.

8.            In discussion, Members welcomed the increase in the empty homes premium; noted the potential impact of the roll out of Universal Credit; and, valued the Council’s discretionary hardship scheme and its sensitive and appropriate implementation by officers. Members asked that consideration be given to how the Council could advertise, particularly to certain community groups, the empty homes premium to encourage a greater number of properties being brought back into use.

9.            That Appendix A to the report provided a summary of the Council Tax Reduction Scheme for 2019/20. A discussion followed on the increasing levels of poverty and the thresholds to be met in terms of affordability. The work currently being undertaken by the Council in the development of a housing growth strategy for the Borough and its aspirations were noted.

Alternative Options Considered: The Council had to agree a Local Council Tax Support Scheme each year. Next year’s scheme had to be agreed by 11 March 2019 or the Government’s default scheme would be applied which was likely to cost the Council over £10m per year.

RECOMMENDED TO COUNCIL:

1.            That Council agrees the Local Council Tax Support Scheme for 2019/20 as summarised in Appendix A of the report to provide financial support for households on low incomes in paying their Council Tax taking into account the Equality Impact Assessment (Appendix B of the report). The 2019/20 scheme was based on the 2018/19 scheme, updated for legislative amendments, income uprating and administrative changes.

2.            For the 2019/20 scheme:

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

2.2         The maximum earned income for Universal Credit claimants to receive council tax support would be £1,264.99 net per month for 2019/20.

2.3         Administrative changes set out in paragraph 5.1 of the report be incorporated into the scheme to improve service delivery.

2.4         Agree the higher amount to be charged for council tax in respect of long-term empty dwellings (Appendix C to the report referred).

2.5         Pursuant to this report (Appendix D of the report) 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 shall be 97,074 Band D equivalents.

2.6         Agree the Ministry of Housing, Communities and Local Government NNDR1 Business Rate base return for 2019/20 (Appendix E of the report).

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

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

(Key decision – reference number 4762)