Agenda and minutes

                                                                                                                  (Attached)

The minutes of the meeting held on 2 July 2012 were approved as a correct record of decisions taken.

No interests were disclosed.

Report HOF205 by the Head of Finance                                          (Attached)

Decision:

1.    Cabinet approves the proposed criteria for the localisation of council tax support for consultation purposes. The proposed scheme for working age customers has the following characteristics:

                                          i.    80% maximum eligibility for those who do not fall into a vulnerable group

                                        ii.    100% maximum eligibility for vulnerable customers (as defined)

                                       iii.    No restrictions based on size of property or council tax band

                                       iv.    Carers, disabled and war pensioners protected

                                        v.    Inclusion of enhanced working disregards meaning that a certain amount of earnings is ignored in the calculation of support

The findings of the consultation will be reported to Cabinet at their meeting in December 2012

2.    Cabinet supports a one month exemption followed by 25% discount for remaining 5 months in relation to Class C (unoccupied and unfurnished) and to support the revised arrangements of a 25% discount for 12 months in respect of Class A (in need of structural repair)

Considerations/Reasons for decision

1)             Report HOF205 by the Head of Finance and appendices (appendix 1: chronology of work completed to date, appendix 2: other options considered, appendix 3: income derived from applying council tax technical changes, appendix 4: equality analysis – localised council tax scheme and appendix 5: equality analysis – Council Tax Technical Changes).

2)             The Local Government Finance Bill, which required the development of a local scheme for council tax benefits.

3)             Government would no longer fund 100% of council tax benefits but would pay a specific grant to billing and major precepting authorities, which equated to a 10% reduction in funding.

4)             Grant funding would be based on previous expenditure on council tax benefit and applied to a projection for total national subsidised council tax benefit expenditure made by the Office of Budget Responsibility.

5)             Proposals by government which would allow billing authorities greater discretion over applying discounts and exemptions for certain categories of property from April 2013.

6)             National and local projections of caseload and total estimated funding gap. The proposed scheme and technical changes would help meet this gap.

7)             Requirement on local authorities to protect pensioners and other vulnerable group (to be defined locally).

8)             Work undertaken with Lincolnshire County Council, Lincolnshire Police and other district councils in Lincolnshire in developing proposals for a local scheme and the impact analysis of potential changes.

9)             Modelling work and caseload analysis undertaken locally and countywide.

10)          Consultation strategy summarised in report number HOF205. Phase 1: major precepting authorities. Phase 2: members of the public.

11)          Recommendations of the Resources Policy Development Group (PDG).

12)          Comments made by Cabinet members during the meeting.

Other options considered and assessed:

·         Working with colleagues around Lincolnshire, Cabinet and Resources PDG members a number of different options were considered. These are listed in appendix 2 of report HOF205

DATE DECISION EFFECTIVE:

Decision CO16 as made on Monday 20 August 2012 can be implemented by Thursday 30 August 2012 unless subject to call-in by the Scrutiny Committee Chairman or any five members of the Council from any political groups.