| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| MATTERS FOR RECOMMENDATION TO THE COUNCIL | ||
| CB 12/092 |
Determination of the Council's Council Tax Reduction Scheme |
Consideration was given to the comprehensive report of the Director of Finance regarding a council tax reduction scheme (CTRS) for the Tonbridge and Malling area, to be effective from 1 April 2013. The report outlined the background to and financial context in which each billing authority was required to establish a local scheme for council tax support on the discontinuance of council tax benefit. Reference was made to the guidance given by the Cabinet in June 2012 (Decision No D120083CAB) in respect of the design of a scheme. The Director of Finance advised that the detailed regulations regarding the operation of the scheme had not yet been published but were due imminently. Details were given of the public consultation exercise which had been accredited by the Consultation Institute together with the outcome of analysis of the responses. A full equalities impact assessment was set out in an annex to the report. Members were advised of the Government's offer of transitional funding to ensure that low income households did not face an extensive increase in their council tax liability in 2013/14. Consideration was given to the impact of such funding on the major precepting authorities and the Kent-wide agreement. Attention was also drawn to a letter to Kent Leaders from the County Council Cabinet Member for Finance and Business Support. The Cabinet noted the potential impacts of the new scheme on people with disabilities, carers, women and working age groups and the following measures to mitigate the effects on such groups: • Continuing to treat people with disabilities and carers more favourably by disregarding some income, thereby giving them a higher entitlement to council tax support. • Continuing to make allowances for childcare costs, in line with the national scheme. • The introduction of a transitional year would reduce the extent of the impacts in year one. • The exploration, after year one, of opportunities to assist further those with severe disabilities and carers, who were unable to work. • A review of the scheme, during the first three years of its operation, to identify any longer-term measures needed to mitigate any ongoing impacts. RECOMMENDED: That (1) the draft scheme be adopted as the council tax reduction scheme (CTRS) for the Tonbridge and Malling area, being a scheme which calculates entitlement to support in the same way as entitlement to council tax benefit but reduces the resultant entitlement to support by 18.5%; (2) in 2013/14, as a transitional arrangement, the impact on entitlement be reduced to 8.5%; (3) the Council apply for the transitional grant on the basis that it is "adopting a scheme that complies with the criteria set by the Government to ensure that low income households do not face an extensive increase in their council tax liability for 2013/14 and that the Council will be exploring more sustainable approaches to managing the funding reduction that minimise the impact on vulnerable taxpayers"; (4) the period for which there is no council tax liability under Class C be reduced from six months to three months; (5) the discount applicable to second homes and long-term empty properties be reduced from 10% to 0%; (6) other discounts and exemptions be reviewed in 2013/14; (7) the Kent-wide agreement be acknowledged and accepted; and (8) the capital plan be amended to reflect the cost of the software required to implement and administer the council tax reduction scheme, the capital cost of such software being fully met by Government grant. *Referred to Council |