Agenda item

This report outlines the Council’s proposed Local Council Tax Support Scheme for 2025/26 ahead of public consultation.

The Leader of the Council presented the report which outlined the Council’s proposed Local Council Tax Support Scheme for 2025/26 ahead of public consultation.

The Council Tax Benefit system was abolished on 31 March 2013 and replaced by the Local Council Tax Support Scheme (LCTSS). This scheme could be determined locally by the Billing Authority having had due consultation with precepting authorities, key stakeholders, and residents.

There were currently 7,172 residents claiming LCTSS in the South Kesteven District. Of these, 3,076 are pensioners who are protected under the legislation and receive LCTSS as prescribed by the Government (broadly similar to the level of Council Tax Benefit). It is the 4,096 claimants of working age who will be affected by changes to the level of support determined by a local scheme.

The Council agreed to a LCTSS which came into effect on 1 April 2013. The core scheme currently provided:

• 80% support for working age claimants

• 100% support for pension age claimants

In determining changes for the 2025/26 scheme, the Council was required to consider the cost of the scheme, along with the administrative and legislative need to consider any changes.

During 2024,there had been a small increase in claim numbers for working age customers, which was detailed within the report. This indicated a downturn in economic activity and financial support for residents.

It was difficult to accurately determine the reasons for the increase in cost, however, Officers had noticed an increase in contact with the Cost of Living Team and an increase in applications for Discretionary Council Tax Payments and Discretionary Housing Payments.

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, alongside technical changes to Council Tax.

In conclusion, there were no proposed changes to the current scheme for 2025/26.

One Member was pleased to see that care leavers would continue to receive Council Tax exemption.

It was queried as to how many care leavers were benefitting from the scheme at present.

ACTION: For the Head of Service - Revenues, Benefits, Customer and Community to provide the Committee with a figure on how many care leavers were benefitting from the scheme at present.

It was proposed and seconded:

‘For the following questions in the upcoming consultation about the Localised Council Tax Support Scheme for 2025-26:

a) Do you support providing targeted council tax relief for employed veterans in Band A properties? Yes or no?

b) If yes, should the relief for employed veterans in Band A properties be 5% or 10% off their annual council tax bill?

Further work would then be expected. ‘

The Deputy Chief Executive clarified the topic of Council Tax for Veterans had previously been discussed where information available in that document enabled the Committee to make the proposal and recommendation. On 27^th June 2024, the Committee requested that no further work be undertaken on the development of a Council Tax Support Scheme for Veterans.

Part 4 – Rules of Procedure (Paragraph 14.28) of the Constitution stated that:

‘No motion or amendment will be proposed which has the effect or intention of rescinding any resolution passed within the preceding six months, or has the same effect as one which has been defeated within the preceding six months, unless significant new information has been received.’

One Member highlighted that the Health Cash Plan, which was discussed at another meeting had not followed Part 4 – Rules of Procedure (Paragraph 14.28). However, this concern was not raised at the time of said meeting.

(The Committee adjourned for 5 minutes)

The Monitoring Officer clarified that the motion proposed was similar to a previous motion voted on at the previous meeting and no new information had been received in relation to the proposal put forward at the meeting.

Part 4 – Rules of Procedure (Paragraph 14.28) of the Constitution applied to this Committee and all meetings of the Council.

Clarification was sought around Part 4 – Rules of Procedure (Paragraph 14.29) of the Constitution.

Part 4 – Rules of Procedure (Paragraph 14.29) of the Constitution related to Full Council meetings, where a recommendation from a Committee or Cabinet had been submitted to Full Council for consideration.

It was proposed, seconded and AGREED that the Finance and Economic Overview and Scrutiny Committee:

1. Note the content of the report.

2. Offers comment and feedback on the proposal of a ‘no change’ Local Council Tax Support Scheme 2025/26 for stakeholder consultation.

3. Approves the areas for stakeholder consultation as detailed in the report.

(Councillors Ben Green, Mark Whittington and Gloria Johnson abstained from the vote, and requested their votes to be recorded).

(Councillors Lee Steptoe, Tim Harrison and Max Sawyer voted in favour of the recommendation, and requested their votes to be recorded).