Agenda item

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 complexities of LCTS at its meeting on 14 June.  They were asked to provide feedback of key areas they would like officers to either leave untouched or look at in more detail.  The EAB had requested officers to look at the recalculation linked to Universal Credit.  This was a complex matter and would be considered as part of the longer Future Options review.

The Council also noted that the Executive had considered the report at its meeting on 23 November 2021 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 Julia McShane, the Council:

RESOLVED:

(1)   That the current Local Council Tax Support Scheme be amended for 2022-23, as set out in detail in Appendix 1 to the report submitted to the Council, 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 legislation to implement a Local Council Tax Support Scheme from 1 April 2022.

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