Issue - meetings

The Portfolio Holder for Finance and Enabling presented a report in respect of the draft Council Tax Support Scheme 2024/25 for Members’ consideration.

The Executive Committee was informed that the Council was required by section 13A(2) of the Local Government Finance Act 1992 (LGFA ’92) to make a Council Tax Reduction Scheme specifying the reductions in Council Tax that would be provided to people who were in financial need, or to classes of people who were in general in financial need.

When a scheme had been made the Council had to, for each tax year, consider whether to revise or replace its scheme. If the Council intended to revise or replace the scheme, then there was a requirement to undertake a formal consultation before making a new scheme.

The Council introduced a new income banded scheme for working age applicants with effect from 1st April 2021. The rationale for the new scheme was to ensure that it was future proofed, and it reduced the administrative burden placed on the Council by the introduction of universal credit.  The Council had amended the scheme in the years since April 2021 to adjust the level of support in-line with funding available; to amend income bands and tapers to adjust for the impact of inflation; and to aid administration.

The existing scheme included a provision for the uprating of income bands by an inflation factor decided by the Council. Changes to income bands would be made in accordance with the existing scheme and would not require consultation but would be subject to the approval of Council.  These increases would be based on the increases in benefits levels that would be announced in the Chancellor’s Speech on 22nd November 2023.

RESOLVED that

1)          the current Council Tax Reduction Scheme be retained for the 2024-25 tax year, subject to the uprating of income bands as provided for within the existing scheme; and

2)          options for the uprating of the income bands to be modelled and presented to Executive Committee for approval and the recommendation of new income grid to Council.