Agenda item

A deputation had been received from Mr Paul Nicolson, representing Tottenham Residents, in relation to item 9 of the Agenda - Council Tax Reduction Scheme.

Mr Nicolson spoke as the representative of Tottenham Residents and firstly welcomed the implementation of the new Council Tax policy, as per item 9 of the Agenda. Mr Nicolson remarked that it was unfortunate this change would not take effect until 2019/2020although he recognised that half of the 6000 families with children claiming working tax benefits would be relieved not to get a Council Tax bill in April 2019. However, many would still have Council Tax arrears from previous years. Additionally, it was queried whether the 4000 working adults claiming benefits would still have to pay Council Tax from 2020.

Mr Nicolson continued to raise the following:

• The changes were a vital start to tackling the results of austerity. It would be used by campaigning organisations as an example to other Councils of what can and ought to be done.
• The national campaign against the Council Tax  was continuing as there were 289 out of 326 Councils in England yet to be persuaded.

• Regarding single-adult job seekers allowance, noted that it was valued at £73.10 a week, and equated to the incoming Universal Credit of £317 a monthwhich Mr Nicolson stated had been losing value since 1979 and had been frozen since 2011. In Mr Nicolson’s view, the value of single-adult job seekers allowance was not enough to pay for a healthy diet, water, fuel, clothes and transport or other necessities. Furthermore, since April 2013, the Job Seekers allowance had been paying a proportion of rent and Council Tax (plus enforcement costs) whereas, before April 2013, it was supported by 100% Council Tax and housing benefits. Mr Nicolson advised that this benefit can be stopped for one or three months with a benefit sanction by the Jobcentres and can be at the same time as the Council sending out the bailiffs to collect Council tax arrears, from a claimant with no income. This situation reflected that the benefit system was not supporting residents in most need.

Mr Nicolson advised that in 2013/14, the Council sent out the bailiffs 12,484 times adding to the arrears, (a) £125 court costs a time payable to the Council, and then (b) £75 a time payable to the bailiffs. A total of £200 a time had added to the arrears which added a total of £2.5 million to the cost of Council tax to Haringey Residents. Mr Nicolson referred to the Treasury Select Committee of MPs report “Household finances: income, saving and debt” published on the 26^th July which stated that people become over-indebted through arrears on bills, including those owed to central and local government, such as Council Tax. This report advised that public authorities often pursue debts over-zealously, uncompromisingly, and with routine recourse to bailiffs, which risks driving the most financially vulnerable people into further difficulty.

In conclusion Mr Nicolson emphasised the negative impact on individuals who found themselves in arrears, specifically to their health and the wellbeing of their families, and requested that Cabinet to institute a thorough overhaul of its Council Tax enforcement practice. Although he acknowledged that half will now not be taxed, but will be in arrears.

The Leader thanked Mr Nicolson and then invited Cabinet Members to comment and/or ask questions.

• Following a question by Cllr Blake, Mr Nicolson commented on his support to  residents, and noted  that the following rules and legislation were used to help dispute the unfair Council Tax related situations being dealt with: Wednesbury rules  and national guidance for bailiffs that deals with vulnerable residents. Also where small amounts are owed, it was noted that Local authorities had the power to reduce the amount of Council Tax residents owed to nil as set out under section 13A of the Local Government Finance Act 1992 and reintroduced in 2012.

• Mr Nicolson acknowledged that the CTRS, proposed at Agenda Item 9, was a positive step in the right direction but that the Council Tax enforcement would need to be addressed to see how this was dealt with. Mr Nicolson found there to be a positive public reaction to the Council Tax Reduction Scheme proposed.

Cllr Berryman, Cabinet Member for Finance, also thanked Mr Nicholson for his efforts on behalf of Haringey residents and looked forward to seeing him on the Fairness Commission as one of the commissioners. The Cabinet Member responded as follows to the issues raised:

• The Council Tax Reduction Scheme was the first step to achieving the Labour administration’s manifesto commitment to providing 100% support for those most in need within the borough. Residents used to receive such support but this was removed following the Conservative/Liberal Democrat government coalition which allowed Councils to impose minimum tariffs on the most in need people most in need.

·         The Council Tax Reduction Scheme was aiming to assist those most in need and would help 6,000 households with children, a majority of which were single parent families.

• Regarding the Council Tax enforcement, the Cabinet Member noted that the report was about reducing what was due from those most in need within the borough but that it was still important to collect what was owed. The Cabinet Member assured Mr Nicolson that the Council would ensure that this was conducted in an ethical way, in line with the administration’s manifesto commitment, and that enforcement officers were all members of the Civil Enforcement Association, which aimed to provide higher industry standards.

• Acknowledged that the Council Tax system was complicated and the Council would be working hard to help residents who most needed its support.