Issue - meetings
Localising Support for Council Tax
Meeting: 04/09/2012 - Cabinet (Item 7)
7 Localising Support for Council Tax 
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Minutes:
Background:
This report provided details of the Government’s plans to localise support for council tax by 2013/2014 together with the intention to reduce expenditure by 10%. The report set out the current position in relation to council tax benefits and the new framework for a council tax support scheme, including requirements for any new local scheme, which would be subject to consultation with major precepting authorities including the Kent Police Authority and the Kent and Medway Fire and Rescue Authority, and the public.
The preferred draft scheme for consultation was set out in Appendix A to the report, together with other possible additional options set out in Appendix E to the report. The proposed timetable, including consultation, was set out in Appendix C to the report.
An initial Diversity Impact Assessment screening had been undertaken on the proposals to look at discounts and exemptions under the new arrangements and on the scheme itself, as set out in Appendix F to the report.
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Decision number: |
Decision: |
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147/2012 |
The Cabinet agreed to consultation being undertaken on the basis of the preferred scheme set out at Appendix A to the report, though agreeing that the consultative document will also describe all other possibilities mentioned in Appendix E to the report. |
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148/2012 |
The Cabinet agreed the consultation period for 8 weeks in accordance with the strategy at Appendix B to the report. |
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The Cabinet noted the intention to amend the level of discounts for empty properties to 100% for the first three months, after which it is to be set at zero for a further period of 3 months, with effect from 1 April 2013 to help mitigate the cost of the preferred scheme. |
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The Cabinet noted the intention to amend the level of discounts for mortgagees in possession to zero and to use the additional income to establish a hardship fund. |
Reasons:
The Council will be obliged to make a council tax support scheme by 31 January 2013 or a default scheme will be imposed upon it. The council will be further obliged to consult with the public prior to adopting the new scheme.
The default scheme will be based upon the current council tax benefit (CTB) scheme and as such the Council would be obliged to find the predicted £4 million shortfall from either a cut in services and/or increase in council tax.
The preferred local scheme for consultation in conjunction with the recommended amendments to certain discounts and exemptions meets the projected shortfall in funding thus protecting existing services and council tax levels.
By basing the new local scheme on the current CTB scheme, the Council is ensuring that any special provisions made for specific groups (eg disabled, war widows, families with children) will continue. It will also retain extended payments which allow a run on of benefit for people entering work, thus meeting the need to incentivise work.