Issue - meetings

The Cabinet Member for Strategic Finance, Corporate Resources and  Transformational Change summarised the report and explained that the council did not wish to push families into homelessness or unsustainable debt, and was determined to stop the decline in the level of support which had occurred over the previous few years. The level therefore had not been reduced for the coming year. The hardship fund was available for those worst off.

The recommendation was proposed as in the report and duly seconded.

An amendment to the recommendation was proposed by Cllr Garratt and duly seconded, as follows:

“The Corporate Plan has an aspiration to provide greater support to those on low incomes, including through the local council tax support scheme. The Corporate Plan also indicates the council will address issues of fuel poverty. It has been announced that the latest figure for consumer price inflation (December 2021) is 5.4%. This is the highest level since March 1992 with analysts predicting higher levels to come. This, together with the impacts of rising household energy costs, makes it vital that aspiration is turned into decisive action by amending the current LCTS Scheme so that the maximum level of support for working age cases is increased.

If there were no statutory requirement for consultation prior to changes to the scheme Council would restore support to 70% from the current 65% from 1 April 2022.

However, given that there is a requirement to consult, Council agrees to do so as quickly as possible on a scheme seeking to provide for 70% support from 1 April 2023.”

Cllr Jordan proposed that the words “at least” be inserted before “70% support” in the last line of Cllr Garratt’s amendment. This was duly seconded.

Cllrs Garratt and Jarman both accepted the amendment

A vote was then taken, the result of which was:

RESOLVED:

To maintain the current LCTS scheme but allowing for any minor adjustments to annual allowable amounts which are used to offset the calculation.

To consult as quickly as possible on a scheme seeking to provide for at least 70% support from April 2023.

Option 2 - To maintain the current LCTS scheme at 65 per cent but allowing for any minor adjustments to annual allowable amounts which are used to offset the calculation.   

There had been much debate and wider input in compiling the report, and a range of options had been discussed. It was noted that the level of support had been progressively eroded over the previous few years. The covid pandemic had resulted in a declining collection rate and there was £4 million still to be collected from tax payers, which had led to an increase in debt recovery activity. A total of 3187 liability orders had been issued.

The proposal was to halt the pattern of decline by keeping the level of support at 65 per cent. Members were resolved not to drive families into poverty and homelessness and wished they could do more. It was hoped that support could be restored in the coming years.

It was confirmed that use of the hardship fund would be monitored.