Issue - meetings

Report from the Cabinet Member for Finance and Resources.

Decision

1.          Cabinet recommends to Council the Local Council Tax Support Scheme 2021/22 be based on the same overarching criteria as the current year’s scheme.

2.          Cabinet considered the request from the Lincolnshire Police and Crime Commissioner to include Special Constables within the Local Council Tax Support scheme from 1 April 2021, however, Cabinet did not support the inclusion of Special Constables within the scheme.

Considerations/reasons for decision

·             Report from the Cabinet Member for Finance and Resources on the Council’s on a review of the Council’s Local Council Tax Support Scheme (LCTSS).

·             Any proposed Local Council Tax Support Scheme must comply with the provisions stated within the Local Government Finance Act 2012 before adoption by the Billing Authority.

·             Covid-19 had impacted the amount of LCTSS awarded. There had been an increase in new customers making claims for Universal Credit and in turn Council Tax support.  The Department of Work and Pensions had fast-tracked processes which had seen an increase in claims.

·             The increase in the cost of the scheme was a direct result of the increase in caseload due to Covid-19.

·             The Council’s local scheme has been updated with amendments since the introduction in April 2013 to maintain the link with Housing Benefit and the previous Council Tax Benefit scheme, the maximum entitlement was currently capped at 80% for working age customers.

·             Technical changes needed to be applied to ensure that the Council’s scheme complied with the Prescribed Scheme Regulations (covering Universal Credit, premiums and discounts).  Details were still outstanding from the Ministry of Housing, Communities and Local Government (MHCLG).

·             Assumptions had been made when modelling the Council Tax Support Scheme options.

·             Lincolnshire County Council and the Police and Crime Commissioner had been consulted as major preceptors.

·             Options had been presented to the Finance, Economic Development and Corporate Services Overview and Scrutiny Committee on 10 November 2020, this had excluded the proposal from the Police and Crime Commissioner as it had not been received.

Other options considered

To increase the maximum award from 70% to 100% (increments of 5% increase): With 3.5% Council Tax increase and 3% caseload increase.

The Cabinet Member for Finance and Resources presented a report on the review of the Council Tax Support Scheme 2021/22, which was based on the overarching criteria of the 2020/21 Scheme.  The current scheme had been in force since 1 April 2013 and the key criteria had remained unchanged.   The current cost of the Scheme was £7.2million.  There had been an increase in claimant numbers since March 2020, specifically working age claimants, this was due to the pandemic and the economic situation.   It was anticipated that claims would increase further, during the year.  The Cabinet Member for Finance and Resources reminded Members that the Council’s cost of the scheme was based on a 9% share of the total cost.  The current scheme was capped at 80% for working age customers, although it was stated that pensioners were protected and received 100%.

The major precepting authorities, Lincolnshire County Council and the Police and Crime Commissioner had been consulted and supported the current scheme.  The Police and Crime Commissioner had asked that consideration be given to a discount for eligible Special Constables who resided within the District.  Recognition was given to the work undertaken by Special Constables and also those who worked within the voluntary and care sector and their contribution to the community. It was felt that no distinction should be made for Special Constables and therefore the Cabinet Member for Finance and Resources did not support the request to include Special Constables within the Scheme. 

Cabinet Members felt that the Police and Crime Commissioner, as a precepting authority, had the ability to recognise the work undertaken by Special Constables directly.  It therefore was, agreed to not support the request to include Special Constables within the Scheme.  It was noted that only one other District Council supported the inclusion of Special Constables within their Scheme.

Further comments from Non-Cabinet Members followed who disagreed with the recommendation not to include Special Constables in the Scheme.  It was reiterated that the Police and Crime Commissioner could give remuneration to recognise the work of Special Constables.

The proposal to recommend the Local Council Tax Support Scheme 2021/22 to Council based on the same overarching criteria as the current year’s scheme was seconded.

On being put to the vote, it was AGREED:

1.     That Cabinet recommended to Council the Local Council Tax Support Scheme 2021/22 be based on the same overarching criteria as the current year’s scheme.

2.     That Cabinet considered the request from the Lincolnshire Police and Crime Commissioner to include Special Constables within the Local Council Tax Support scheme from 1 April 2021, however, Cabinet did not support the inclusion of Special Constables within the scheme.