Issue - meetings

[Report of the Chief Operating Officer. To be introduced by the Cabinet Member for Finance and Health.]Review of proposed Council Tax Reduction Scheme for 2017/18. The Scheme needs to be approved each year by Full Council regardless of any changes.

The Cabinet Member for Finance and Health introduced the report which set out the details of the review of Haringey’s current Council Tax Reduction Scheme (CTRS) 2016/17 and the recommendations for Haringey’s CTRS for 2017/18 taking into consideration the assessment of options and an Equalities Impact Assessment (EQIA). 

Cabinet noted that the proposal to maintain the current scheme .The Cabinet Member advised that to increase the minimum payment would cause low income residents more financial difficulties, but to also to reduce the minimum payment would have an impact on the budget.

RESOLVED

That Cabinet recommend to Full Council:

1.    To note that an Equalities Impact Assessment (Appendix E) has been undertaken in relation to the Council Tax Reduction Scheme and that the findings of this EIA must be taken into account when making a decision regarding the Scheme for 2017/18.

2.    To agree to adopt the Council Tax Reduction Scheme 2017/18 as contained in Appendix C and therefore retains the same Scheme agreed for 2013/14 and continued since.

3. Accordingly, the scheme as summarised in Appendix A and set out in full at Appendix C will continue to apply for 2017/18:

                      I.        That pensioners will continue to receive support for the payment of Council Tax.

                    II.        That those in receipt of certain disability benefits continue to receive support for the payment of Council Tax.

                   III.        For all working age claimants, the extent of Council Tax Support available will continue to be capped at 80.2% of Council Tax liability.  In other words, working age claimants will continue to receive the same level of Council Tax Support as 2013/14, this amount representing a 19.8% reduction in the level of Council Tax Support available as compared with the amount of Council Tax Benefit received in 2012/2013.

4. For Authority to be given to the Chief Operating Officer and Assistant Director of the Shared Service Centre to take all appropriate steps to implement and administer the Scheme.

Reasons for Decision

The recommendation to retain the current scheme continues to support the Government’s initiative of work incentives and pays due regard to the challenging financial climate we are currently in.

In recognition of the vulnerable sectors of society, we have supportive measures in place. It is proposed that these continue into 2017/18. Maintaining the current scheme ensures that these protected claimants will not be further disadvantaged.

Although performance remains higher than originally anticipated, there remains a shortfall in collection.  This coupled with the fact that the Revenue Support Grant has been reduced by over 50%, equating to over £50m, has meant that the Council has had to implement significant service reductions and efficiency savings.  As a result it is not possible for the Council to expand the scheme to include protection for other groups.

Alternative Options Considered

In accordance with paragraph 5 of Schedule 1A to the Local Government Finance Act 1992 (the 1992 Act), each financial year the Council is required to consider whether to revise or replace its scheme.  One option for the Council  ...  view the full minutes text for item 86