Issue - meetings

(A report by Brendan Arnold, Interim Director of Finance (S151 Officer)

The Committee received a report from the Interim Director of Finance (S151 Officer) outlining the proposed options for the 2026/27 Local Council Tax Support (CTS) scheme for working-age claimants, as part of the statutory consultation process. The report was accompanied by supporting documentation, including the consultation survey (Appendix 1).

Members were advised that pension-age claimants remained protected under national regulations and were unaffected by the proposed changes. The current scheme provided up to 100% support for households with children and 75% support for other households. The estimated total CTS expenditure for 2025/26 was £4.9 million, with Boston Borough Council contributing approximately 13% (£656,000).

In light of financial pressures, Cabinet had agreed to consult on three options:

·       Option 1: Retain current support levels (100% for households with children, 85% for others);

·       Option 2: Reduce support to 90% for lone parents, 80% for couples with children, and 75% for others — saving £45,000; and

·       Option 3: Reduce support to 90% for lone parents, 80% for couples with children, and 70% for others — saving £57,000.

The Committee noted that any reduction in support may increase non-payment and debt levels among low-income households, requiring additional bad debt provision.

The Chairman expressed surprise that the item had been brought to the Committee at this stage, noting that the consultation had already commenced and that the Committee’s ability to influence the process was limited. He suggested that the item would be more appropriately considered once the consultation had concluded.

The Interim Director of Finance (S151 Officer) explained the statutory timeline and confirmed that the consultation had been launched to meet legal requirements. He agreed that the Committee’s input would be most valuable once the results were available and could inform the final scheme recommendation.

Members discussed the potential financial impact of the scheme on the Council’s contribution and queried how much additional funding would be required under the worst-case scenario. The Interim Director of Finance (S151 Officer) undertook to provide a written response on that point.

The Committee agreed that the item should return for further scrutiny once the consultation had closed and the results were available.

Resolved:

That the Committee receive a further report following the conclusion of the consultation to inform its recommendation to Cabinet.

(A report by Brendan Arnold, Interim Director of Finance (S151 Officer))

The Portfolio Holder for Finance and Economic Growth, Councillor Sandeep Ghosh, presented a report by the Interim Director of Finance (S151 Officer) which sought Cabinet’s approval to consult on options for the 2026/27 Local Council Tax Support Scheme.

Cabinet was informed that since 2013, billing authorities had been required to develop local schemes to support low-income working-age households. The national scheme for pensioners remained unchanged, with councils having no discretion in that area.

Councillor Ghosh explained that the current scheme provided up to 100% support for households with children and up to 85% support for other working-age households. Forecast expenditure for 2025/26 was approximately £4.9 million, with over £2.6 million allocated to working-age claimants. The cost of the scheme was shared between major precepting authorities, with Boston Borough Council meeting around 13% of the total.

Although the scheme had originally been scheduled for review after a full year of operation, the Council’s wider financial challenges had necessitated an earlier reassessment. Three options were therefore proposed for consultation:

·         Option 1 – Retain the current maximum support levels and identify savings elsewhere.

·         Option 2 – Reduce support to 90% for lone parents, 80% for couples with children, and 75% for other households.

·         Option 3 – Reduce support to 90% for lone parents, 80% for couples with children, and 70% for other households.

Cabinet was reminded that the purpose of the report was to agree the consultation approach, not to determine the final scheme. A further report would be brought back following the consultation, with final recommendations to be made to Full Council.

Members discussed the report and commented as follows:

·         Cabinet acknowledged the importance of the consultation and its potential impact on residents across the borough. Members emphasised the need for wide engagement, including with parish councils, to ensure that all communities had the opportunity to contribute.

·         It was noted that the Council faced a difficult balancing act between supporting vulnerable households and maintaining financial sustainability. Members stressed the importance of gathering a broad range of views to inform the final decision.

·         Cabinet welcomed the proposal to consult on multiple options and supported efforts to promote the consultation through various channels, including community networks and online platforms.

The recommendations were moved by Councillor Sandeep Ghosh Broughton and seconded by Councillor Mike Gilbert.

Resolved:

1.    That the following options be consulted on:

• Option 1 - Retain the current maximum level of support for Households with Children 100% and Other Households 85% and find savings elsewhere;
• Option 2 – Reduce the maximum level of support to 90% to lone parents, 80% to couples with children and 75% for all other households;
• Option 3 – Reduce the maximum level of support to 90% to lone parents, 80% to couples with children and 70% for all other households; and

2.    That oversight and approval of the consultation approach be delegated to the Section 151 Officer in consultation with the Portfolio Holder for Finance.