Decision details

RESOLVED:

1.     That the Cabinet recommends to Council that the Council Tax Reduction backdate period be extended from 6 months to 12 months, as detailed in Section 6, from 1 April 2023.

2.     That a Task and Finish Group review a Banded scheme during 2023.

REASONS FOR DECISION:

As set out in the report.

KEY DECISION:

Report to Cabinet and Council.

PORTFOLIO:

Finance, Investment and Corporate Services.

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in the report.

DECLARATIONS OF INTEREST(S):

None.

DISCUSSION:

The Portfolio Holder introduced the item and reminded Members that local authorities were responsible for setting up their own Council Tax Reduction Schemes to support those of working age on low income in paying their council tax. It was reported that there were currently 7904 claimants receiving Council Tax Reduction which costed the Council approximately £9.1milion. The amount of Council Tax Reductions awarded affects the tax base and is not identified within the overall formula grant allocation from national Government.

The Task and Finish Group that was set up to review the Banded scheme during 2022, along with the vulnerable category with any proposals for change to take effect from 1 April 2023 met and considered the varying factors that impacted the Council-Tax in-year collection rate for those in receipt of Council Tax Reduction. It was acknowledged that in 2022/2023 council tax bills had increased, the level of administration involved in collecting council tax had increased and welfare reform changes and the cost-of-living crisis had also negatively affected low-income households.

The Portfolio Holder was confident that collection rates for Council Tax would remain high and encouraged anyone who was facing difficulties in paying their Council Tax to make contact with the Council at the earliest opportunity as there are support measures on offer.