Issue - meetings

Cabinet received a report which was submitted following consultation on proposals for the Council Tax Support Scheme 2016/17, including discussion at the Joint Budget Scrutiny Committee held on 26 November 2015.

The purpose of the report was for Cabinet to make a recommendation to Council on the Council Tax Support Scheme to be implemented in Peterborough from April 2016, including the introduction of a council tax discretionary hardship policy.

The Cabinet Member for Growth, Planning, Housing and Economic Development introduced the report, on behalf of the Cabinet Member for Resources, highlighting the main points contained within. It was proposed that there be no change to the existing scheme reduction of 30%, but with some minor amendments to housing benefit rules.

The public consultation responses had been mixed and Cabinet was advised that one further response had been circulated prior to the meeting in addition to those contained within the report. The consultation would remain open and a further update would be provided to Council at its meeting due to be held on Wednesday 27 January 2016.

Cabinet considered the report and NOTED:

1.   The feedback received to date on the consultation and proposed changes to the council tax support scheme, including the additional consultation response as tabled at the meeting;

And RESOLVED TO RECOMMEND TO COUNCIL:

2.  To approve a Local Council Tax Support Scheme for Peterborough that contains the following components, as set out in the report:

a)    No change to the existing scheme reduction of 30% for all eligible working age claimants;

b)    Aligns the Council tax support scheme to Housing Benefit rules making it less complicated for claimants, namely to:

 i.   Limit backdating of council tax support to one month;

 ii.  Remove family premiums from all new claimants, or existing claimants who would otherwise have had a new entitlement to the premium, with effect from 1 May 2016.

Cabinet further RESOLVED:

3.   To approve the introduction of a council tax discretionary hardship policy with effect from 1 April 2016.

REASONS FOR THE DECISION

The Council was statutorily required to approve a council tax support scheme by 31 January 2016 having had regard for the Council’s financial position and feedback from responses to the consultation. As part of the consultation, the Council had consulted on a council tax discretionary hardship policy.

ALTERNATIVE OPTIONS CONSIDERED

The Council was statutorily required to approve a local scheme by 31 January. Cabinet had discussed the current 30% council tax support scheme with the cross party Budget Working Group as part of ongoing budget discussions. Options discussed were:

i.      One option would have been to increase the 30% scheme, however this would have had a negative impact on low income households with claimants having to pay more council tax.

ii.     Another option would have been to reduce the 30% scheme, however, this would have required the Council to find savings of up to £2.4m from elsewhere in the budget.