Issue - meetings

(A report by Russell Stone, Director of Finance (S151 Officer))

The Portfolio Holder for Economic Growth and Finance, Councillor Sandeep Ghosh, introduced the report which set out the proposed Local Council Tax Support (LCTS) Scheme for 2026/27. Members were reminded that the authority was required to review and approve its working?age LCTS scheme annually and that consultation had been undertaken on a range of options to ensure both continued support for vulnerable residents and the Council’s ability to maintain a balanced budget.

The Portfolio Holder explained that the Council had consulted on three options: retaining the existing level of support, or introducing revised maximum entitlement levels of either 90% for lone parents, 80% for couples with children, and 75% for all other working?age households, or a further reduced option. Members were advised that the Cabinet had recommended adoption of the more moderate of the reduction options, 90% / 80% / 75% as set out in the report, with the scheme operating in line with the annual DWP uprating of allowances and premiums.

A substantial debate took place on the proposal, noting the need to balance financial sustainability with the core purpose of the scheme in protecting lower?income households. Members recognised the increasing financial pressures on the Council, including the need to deliver a balanced Medium?Term Financial Strategy, and acknowledged that LCTS remained one of the most significant discretionary financial commitments within the Council’s budget.

Points were raised regarding the impact of the proposed reduction on households facing rising living costs, and Members discussed the potential consequences for families with children, single working?age adults, and those already experiencing hardship. Reference was made to the continuation of the Exceptional Hardship Fund, introduced alongside the current scheme, which would remain available to support the most vulnerable cases affected by changes to entitlement.

Some Members expressed concerns that reducing support could increase financial pressure on low?income households and disproportionately affect those struggling with living costs, while others emphasised the importance of fairness across all taxpayers and the need to ensure the scheme remained financially sustainable. Members also noted that precepting authorities had expressed support for options that reduced the overall cost of the scheme.

A recorded vote was requested and supported. The motion was carried by 18 votes in favour, 5 against, and 3 abstentions.

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

Resolved:

That the Local Council Tax Support Scheme for 2026/27 be revised to provide a maximum entitlement of 90% for lone parents, 80% for couples with children, and 75% for all other working?age households; with the scheme operated in line with the DWP annual uprating of allowances and premiums.

(A report by Russell Stone, Director of Finance (S151 Officer))

The Director of Finance (S151 Officer) presented a report which detailed the annual review of the Local Council Tax Support (LCTS) Scheme for working-age households. Cabinet was reminded that the Council is required to review its scheme each year and consult with precepting authorities and other stakeholders. The scheme for pension-age households remains prescribed by Government and is not subject to local discretion. The report included consultation results and modelling within the supporting Appendix 1.

The current scheme provided up to 100% support for households with children and up to 85% support for other working-age households. The report outlined the outcome of the consultation agreed by Cabinet in September 2025, which sought views on three options for 2026/27:

·         Option 1: Retain the current maximum support levels.

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

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

Consultation responses indicated a modest level of engagement, with the majority supporting a reduction in support. The report recommended Option 2 as the preferred approach, balancing the need to reduce scheme costs with the aim of minimising the impact on vulnerable households. The estimated saving from Option 2 was approximately £332,000, compared to £421,000 for Option 3. The report also confirmed that the scheme would continue to include discretionary provisions for exceptional hardship cases and would be uprated annually in line with Department for Work and Pensions (DWP) allowances and premiums.

Members acknowledged the financial pressures facing the Council and the need to deliver a balanced budget while continuing to support those most in need. The discussion recognised that the proposed changes represented a difficult but necessary decision, given the wider economic context and the Council’s duty to maintain financial sustainability.

It was noted that the recommended option sought to limit reductions for households with children and lone parents, while introducing a fairer contribution for other working-age households. The inclusion of an exceptional hardship provision was welcomed as an important safeguard for those experiencing severe financial difficulty.

Members also reflected on the consultation process, noting the low level of responses and the importance of exploring alternative methods of engagement in future to ensure broader participation. The need for clear communication with residents about the changes and the support available was emphasised.

The discussion concluded that Option 2 provided the most balanced approach, reducing scheme costs without imposing the more significant reductions proposed under Option 3.

The recommendation was moved by Councillor John Baxter and seconded by Councillor Claire Rylott.

Resolved:

1.    That Full Council be recommended to approve a change to the maximum level of support to 90% for lone parents, 80% for couples with children and 75% for all other households with the scheme uprated in line with DWP’s annual update of allowances and premiums for 2026/27; and

2.    That approval for developing the 2026/27 scheme rules in accordance with recommendation 1, above,  ...  view the full minutes text for item 36