Agenda item

(A report by Christine Marshall, Deputy Chief Executive (Corporate Development) & S151)

Councillor Sandeep Ghosh presented the Local Council Tax Support Scheme 2025/26 report in respect of the final Council Tax Support scheme for 2025/26, having regard to the fundamental review carried out this year and the feedback obtained through the consultation process.

Members discussed the report and commented as follows:

·       Recognition was given to members of the community that had responded to the consultation.

·       In relation to the low number of responses, the importance of finding more meaningful ways of reaching out to residents to boost involvement was noted.

·       Members noted how the scheme would bring administrative and yearly savings to families which were estimated up to £300.

·       The Chief Executive clarified that the Council tax support scheme was a decision for the Borough Council to make, however it clearly would have an impact on the upper tier authority as well and that the County Council would also be going through a similar process. He advised that members could proceed with their decision at present and that by January’s Full Council meeting the authority would be further on in terms of understanding the overall budget.

·       Research by officers was considered to inform on the impact related to the alteration of the upper capital limit.

·       Members were advised that implementation of the Scheme would increase the total cost by around £384,000, of which £39,000 (10.3%) would be a cost to the Council

·       Members highlighted the need for the Council to support its residents and address child poverty, especially families with children.

·       Concerns were shared regarding the translating costs linked to the implementation of the Scheme impacting the budget and consequently triggering cancelations on future grants, considering the IDB cost increasing to over £50 million nationally, and forecast decreases to the Bank of England’s interest rate that will impact on the Councils investment income.

The recommendations were moved by Councillor Anne Dorrian and seconded by Councillor John Baxter.

RESOLVED:

1.     That the following scheme options be recommended to Full Council:

a.     Increase the maximum CTS for households with children to 100% and 85% for other households.

b.    Remove the earnings disregard to Universal Credit claims.

c.     Introduce a standard £10 rate for non-dependant deductions.

d.    Introduce a minimum award of £1 per week.

e.     Reduce the Upper capital limit to £10,000.

f.      Replace the three-month review with a threshold for changes in Universal Credit, with discretion for flexibility at £30 per week.

g.    Uprate in line with DWP uprating amounts for 2025/26.

2.     That authority be delegated to the Section 151 Officer, in consultation with the Portfolio Holder for Finance, to finalise the 2025/26 final scheme policy, including administrative and minor changes;

3.     That an Exceptional Hardship Fund, to operate alongside the Council Tax Support scheme, be introduced; and

4.     That authority be delegated to the Section 151 Officer, in consultation with the Portfolio Holder for Finance, to finalise the fund budget and scheme detail.

[Councillor Emma Cresswell entered the meeting at 7.03pm during consideration of the above item.

The Head of Revenues and Benefits PSPSL left the meeting at 7.08pm following consideration of the above item.]