Issue - meetings

The Council considered a report on its statutory duty to determine annually whether to revise its Local Council Tax Support Scheme (LCTSS), replace it with another or make no changes.   The Council was obliged to consult with interested parties if it wished to revise or replace the scheme.  The Council must approve a scheme for the 2022-23 financial year by 31 January 2022, to enable annual bills to be calculated correctly.

The Council noted that the LCTSS currently helped around 4,500 households by providing £5.8 million of support. The cost of the scheme was shared with Surrey County Council, with Guildford’s share being around 10%.

In 2021-22, a number of minor changes were made to the scheme.  For 2022-23 the following changes with a revenue cost of £2,500 had been proposed:

·       Increase Personal Allowances and Premiums to ensure that the help given did not unduly reduce due to inflation. 

·       Increase Non-Dependant Deductions to reflect an expectation that their contribution to the household expenses should increase each year.

·       Continue to remove the cap on Band E entitlement for 2022-23 to provide additional help during the pandemic.  This would allow anyone in a Band E property who was eligible for 100% help to receive 100% instead of having the help restricted to a maximum of a lower banded Band D property.

Changes to Personal Allowances, Premiums and the Band E restriction would increase the cost of the scheme.  The nature of changing caseload and personal circumstances of claimants meant that officers had forecast that the increase could be accommodated within the existing revenue budget. 

A stakeholder consultation carried out during September to October 2021 had received a low response rate, but Surrey County Council and the Police and Crime Commissioner for Surrey supported the changes proposed for 2022.

The Council had increased the discretionary hardship fund for 2021-22 in anticipation of an increase in unemployment levels and calls for help.  Whilst only half way through the year, with continuing uncertainty, the economic outlook was much more positive with the likelihood that the additional funds not being required. Accordingly, officers had proposed that the hardship fund should return to its normal £40,000.  This should still provide sufficient funds for any additional applications that may result from the end of furlough or with increased caseload as a result of business failures.

The Council noted that, in 2020, the government had provided COVID19 Council Tax Hardship Funds, which were separate from the LCTS Hardship Fund and allowed the Council to support taxpayers with additional Council Tax discounts.  Given that a taxpayer could not receive more than a 100% reduction, and as a large percentage already received 100% LCTS, the Council did not spend all the funds and had carried them forward to provide additional support in 2021.  It was forecast that funds would remain at the end of 2021 and it was proposed that these should again be carried forward to provide further discounts in 2022.

The Strategy and Resources EAB had considered the  ...  view the full minutes text for item 80

Decision:

The Executive agreed to recommend to Council at its meeting on 7 December 2021:

(1)    That the current Local Council Tax Support Scheme (which is on our website), be amended for 2022-23 as set out in detail in Appendix 1 of the report, with effect from 1 April 2022.

(2)    That the Council maintains a discretionary hardship fund of £40,000 in 2022-23, and carries forward any residual 2020 and 2021 COVID19 Council Tax Hardship Funds.

Reasons:

1.     To ensure that the Council complies with government legislation to implement a LCTS scheme from 1 April 2022.

2.     To maintain a discretionary fund to help applicants suffering from severe financial hardship.

Other options considered and rejected by the Executive:

None.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None.

Local Council Tax Support (LCTS), otherwise known as Council Tax Reduction (CTR),  helped around 4,500 households with low incomes in the borough to pay their Council Tax, by providing £5.8 million of support.  The cost of providing the support was shared with Surrey County Council, with Guildford’s share being about 10%.  The Council was under a statutory duty to annually review its LCTS scheme, was obliged to consult with interested parties and to approve a scheme for the 2022-23 financial year by 31 January 2022, to enable annual bills to be calculated correctly.

The Executive considered a report setting out the proposals for the next financial year arising from the latest annual review. The report was introduced by the Leader of the Council in the absence of the Lead Councillor for Resources.

In 2021-22, the Council had agreed some small changes to the scheme to account for inflationary pressures. By increasing Personal Allowances, Premiums and Non-Dependant Deductions.  The cap on Band E entitlement for 2021-22 was removed to provide additional help during the pandemic. The discretionary hardship fund was increased for 2021-22 in anticipation of an increase in unemployment levels and calls for help. 

For 2022-23, it was once again proposed to increase Personal Allowances and Premiums which was forecast would have a revenue cost of £2,500. The discretionary hardship fund would be reset at £40,000 for the coming year as the economic outlook had improved. 

The stakeholder consultation had been undertaken between 24 September and 13 October 2021.  Surrey County Council and Surrey Police and Crime Commissioner were in agreement with the proposals and just one other response had been received.  Whilst this was disappointing the submission was also supportive.

Councillors considered the complexities of LCTS at the Strategy and Resources EAB on 14 June 2021.  The Board would like the recalculation linked to Universal Credit to be looked at.  This was a complex matter and would be considered as part of the longer Future Options review.

The Leader commended officers for the quality of the report.

The Executive

RESOLVED: To recommend to Council at its meeting on 7 December 2021:

(1)    That the current Local Council Tax Support Scheme (which is on our website), be amended for 2022-23 as set out in detail in Appendix 1 to the report submitted to the Executive, with effect from 1 April 2022.

(2)    That the Council maintains a discretionary hardship fund of £40,000 in 2022-23, and carries forward any residual 2020 and 2021 COVID19 Council Tax Hardship Funds.

Reasons:

1.     To ensure that the Council complies with government legislation to implement a LCTS scheme from 1 April 2022.

2.     To maintain a discretionary fund to help applicants suffering from severe financial hardship.

The Council received a report on its statutory duty to consider annually whether to revise its Local Council Tax Support Scheme (LCTSS), replace it with another or make no changes.   The Council was obliged to consult with interested parties if it wished to revise or replace the scheme.  A stakeholder consultation carried out during September to October 2020 had received a low response rate, but Surrey County Council and the Police and Crime Commissioner for Surrey supported the changes proposed for 2021.

The Council noted that the LCTSS currently helped around 4,500 households by providing £5.7 million of support. The cost of the scheme was shared with Surrey County Council, with Guildford’s share being around 10%.

In 2020-21, a number of minor changes were made to the scheme.  For 2021-22 the following changes with a revenue cost of £65,000 had been proposed:

·       Increase Personal Allowances and Premiums to match inflation.

·       Increase Non-Dependant Deductions to reflect an expectation that their contribution to the household expenses should increase each year.

·       Remove the cap on Band E entitlement for 2021-22, to provide additional help during the pandemic.

It was also proposed to increase the discretionary hardship fund to support any applicant suffering adversely from the consequences of savings to the Local Council Tax Support put in place over the past eight years, in addition to the proposed changes for 2021-22. It was proposed that the fund be increased from £40,000 to £60,000 for 2021-22.

During 2020 the government had provided COVID19 Council Tax Hardship Funds allowing the Council to support taxpayers with additional Council Tax discounts. It was proposed that any funds remaining at the end of the year would be carried over into 2021.

The Council was required to approve a scheme for the 2021-22 financial year by 31 January 2021 to enable annual bills to be calculated correctly.  It was noted that the review of the LCTSS for 2022-23 would be included on the work programme for the Service Delivery Executive Advisory Board in 2021. 

The Executive had considered the report at its meeting on 24 November 2020 and had endorsed the recommendation therein.

Upon the motion of the Lead Councillor for Resources, Councillor Tim Anderson, seconded by the Deputy Leader of the Council, Councillor Caroline Reeves, the Council:

RESOLVED:

(1)   That the current Local Council Tax Support Scheme be amended for 2021-22, as set out in detail in Appendix 1 to the report submitted to the Council, with effect from 1 April 2021.

(2)   That the Council continues to maintain a discretionary hardship fund in 2021-22, increases it to £60,000, and carries forward any residual 2020 COVID19 Council Tax Hardship Funds.

Reasons:

(1)   To ensure that the Council complies with legislation to implement a Local Council Tax Support Scheme from 1 April 2021.

(2)   To maintain a discretionary fund to help applicants suffering from severe financial hardship.

Decision:

That the Executive recommends to full Council on 8 December 2020:

(1)        That the current Local Council Tax Support scheme be amended for 2021-22, as set out in detail in Appendix 1 to the report submitted to the Executive, with effect from 1 April 2021.

(2)        That the Council maintains a discretionary hardship fund in 2021-22, increases it to £60,000, and carries forward any residual 2020 COVID19 Council Tax Hardship Funds.

Reasons:

(1)        To ensure that the Council complies with government legislation to implement a LCTS scheme from 1 April 2021.

(2)        To maintain a discretionary fund to help applicants suffering from severe financial hardship.

Other options considered and rejected by the Executive:

None.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None

Households with an income too low to cover household costs were helped by the Council to pay their Council Tax with a support scheme. The Executive noted that the Local Council Tax Support (LCTS) scheme helped around 4,500 households by providing £5.7 million of support. The cost of the LCTS was shared with Surrey County Council, Guildford’s share being around 10%.

The Council had a statutory duty to annually consider if it should make any changes to the LCTS scheme. To make any changes the Council was obliged to consult with interested parties, but it was good practice to consult even if there were no changes proposed. A stakeholder consultation carried out during September to October received a low response rate, but Surrey County Council and the Police supported the changes proposed for 2021.

In 2020-21 there were minor changes to the scheme. For 2021-22 the following changes with a revenue cost of £65,000 were proposed:

·       Increase Personal Allowances and Premiums to match inflation.

·       Increase Non-Dependant Deductions to reflect an expectation that their contribution to the household expenses should increase each year.

·       Remove the cap on Band E entitlement for 2021-22, to provide additional help during the pandemic.

There would be an increased discretionary hardship fund to support any applicant suffering adversely from the consequences of savings to the Local Council Tax Support put in place over the past eight years, in addition to the proposed changes for 2021-22. It was proposed that the fund be increased from £40,000 to £60,000 for 2021-22.

During 2020 the government had provided COVID19 Council Tax Hardship Funds allowing the Council to support taxpayers with additional Council Tax discounts. It was proposed that any funds remaining at the end of the year would be carried over into 2021.

The Council was required to approve a scheme for the 2021-22 financial year by 31 January 2021 to enable annual bills to be calculated correctly.  It was noted that the review of the LCTS scheme for 2022-23 would be included on the work programme for the Service Delivery Executive Advisory Board in 2021. 

The Executive

RECOMMEND (to Council: 8 December 2020):

(1)        That the current Local Council Tax Support scheme be amended for 2021-22, as set out in detail in Appendix 1 to the report submitted to the Executive, with effect from 1 April 2021.

(2)        That the Council maintains a discretionary hardship fund in 2021-22, increases it to £60,000, and carries forward any residual 2020 COVID19 Council Tax Hardship Funds.

Reasons:

(1)        To ensure that the Council complies with government legislation to implement a LCTS scheme from 1 April 2021.

(2)        To maintain a discretionary fund to help applicants suffering from severe financial hardship.