Decision details

Cabinet received a report following the consultation on proposals for Council Tax Support for 2015/16 launched by CMDN on 2^nd December 2014, including discussion at the Joint Budget Scrutiny on 3^rd December 2014, prior to Cabinet on 19^th January 2015 making a recommendation to the Council meeting of January 28^th 2015.

The purpose of the report was to make a recommendation to Full Council on the Council Tax Support Scheme to be implemented in Peterborough from April 2015.

Cabinet considered the report and RESOLVED:

1.    To consider the feedback received to date on the consultation on proposed changes to the council tax support scheme, including the updates tabled at the meeting.

2. To recommend that Council agrees the Local Council Tax Support Scheme for Peterborough, including the level of reduction in benefit for working age claimants, for which Cabinet recommended that the reduction be kept at 30%.

The Constitution required the Cabinet Member to approve the draft Council Tax Support scheme for consultation.

  1.       No change and keep council tax support at a 30% reduction

For Peterborough this would result in an additional pressure of around £1m and savings to be made from elsewhere in its budget.  This could also affect the services provided by our Fire and Police Authorities as over 17% of the council tax that is collected is distributed to these preceptors.

If the Council were to absorb the deficit, it would then have to find savings elsewhere in the budget due to the limited amount of resources available to run all Council services.  Given the reductions in grant the Council is facing, further reductions of £1m would have a significant impact.

The Council has released its first phase of budget proposals for 2015/16. Respondents to the CTSS consultation would be encouraged to review the budget proposals to determine whether they would prefer changes to CTSS, or additional savings to be found elsewhere in the Council budget.

            2.       Design a local scheme to deliver £1m savings – a 50% reduction

To reduce all CTB equally - as the Government has made clear that pensioners must be protected, the whole of this shortfall would need to be met by working age claimants.  As a result, to meet the £1m funding shortfall, the reduction would need to increase from 30% to around 50%.

  3.       Somewhere in between

            As with the option of ‘no change’, absorbing any deficit from a shortfall in funding will impact on the services that the Council currently delivers, but would mean a lesser impact on benefit recipients. Options to be considered could include further reducing council tax support:

·         From 30% to 35% to save £0.25m (and £0.75m being found elsewhere in the council’s budget)

·         From 30% to 40% to save £0.50m (and £0.5m being found elsewhere in the council’s budget)

The Council has previously considered other changes to the e.g introducing a maximum or minimum level of support. These have been rejected as they make the scheme more complex and generate little saving. As such the straightforward overall reduction is maintained for any changes.

None.

Council Tax Benefit Regulations:

http://www.legislation.gov.uk/uksi/2006/215/contents/made

DCLG – Localising Council Tax Support:

DCLG – Localising Council Tax Support - Equality Impact Assessment:

http://www.communities.gov.uk/localgovernment/localgovernmentfinance/counciltax/counciltaxsupport/