Agenda item

The Executive RESOLVED

(i)              to note the calculations of the tax base in Annexes A to F summarised below:

(ii)             to note that the changes to Council Tax discounts made by Executive on 7 January 2014 under the freedoms given in the Local Government Finance Act 2012 and relevant statutory instruments remain unchanged for 2019/20;

(iii)            that £19,943.44 be given to Parishes in 2019/20 to offset the effect on the tax base of the Local Council Tax Support scheme; and

(iv)           that the final setting of the Tax Base be delegated to the Executive Head of Finance.

The Executive RECOMMENDED to Full Council that

(i)              the Local Council Tax Support Scheme for Surrey Heath, approved by Council on 22 January 2013, remains unchanged for 2019/20;

(ii)             the Council Tax Exceptional Hardship Policy remains unchanged for 2019/20;

(iii)            from 1st April 2019 young people who have left care (care leavers) will receive a full reduction from Council Tax until their 25th birthday;

(iv)           authority be delegated to the Executive Head of Finance to make minor changes to the Local Council Tax Support scheme so as to ensure that where applicable to income calculation it remains in line with Housing Benefit / Universal Credit changes introduced by legislation; and

(v)            incomes and applicable amounts and non-dependant deductions are uprated in line with the percentages and amounts supplied by DWP and DCLG, and applied to Housing Benefit claims.

The Executive received a report on the setting of the Council Tax Base for 2019/20 which reviewed the changes to Council Tax made in 2013/14 and the Local Council Tax Support Scheme (LCTSS) introduced in April 2013.

Members noted that there had been an increase in the tax base of 513.8 which would generate an additional income of £115,000 based on the current Band D council tax charge.  The Executive received detailed breakdowns of the calculations of the Tax Base for each part of the Borough and a breakdown of the calculation of the Tax Base for the whole area.

Technical changes to Council Tax had been introduced from April 2013 under the Local Government Finance Act 2012 which meant that the Council was empowered to set a number of changes to Council Tax discounts and exemptions, as well as introduce a premium for long term empty properties.

Members noted the proposal to introduce a relief for 2019/20 in respect of Young People who have left care and indicated support for this initiative.

On 1 April 2013 the Council had introduced a new Local Council Tax Support Scheme (LCTSS) to replace Council Tax Benefit, for working age claimants. The new scheme operated as a Council Tax discount and the Council was able to vary the value of discount on Council Tax granted to working age claimants. Pensioner claimants were protected and would continue to receive help towards their Council Tax, based on regulations set by Central Government.

Given the imminent introduction of Universal Credit to some claimants, the Executive recognised the recommendation that the scheme remained unchanged at present until the full impact of this could be assessed

Members were reminded that in 2017/18 the Revenue Support Grant had been reduced to zero and, therefore, it was reasonable to assume that there would be no governmental support for funding the LCTSS.

For ease of administration, it was important that there was alignment in respect of treatment of income and calculation of applicable amounts between housing benefit and the local council tax support scheme. Each year the Government made minor changes to its scheme to reflect uprating of benefits etc. In order that the housing benefit and LCTSS remained aligned, it was proposed that the Executive Head of Finance be authorised to make such minor changes as may be necessary to the LCTSS for all types of claimant.

The introduction of the LCTSS in April 2013 had had the effect of reducing the Council Tax base since it operated as a discount rather than a benefit.   In order to recognise the effect that this had on parishes, the Government had provided a grant in 2013/14 to give to parishes to ensure they were no worse off because of the introduction of the LCTSS. This money had subsequently been included within the revenue support grant (RSG), but as the Council’s RSG is now zero it was reasonable to assume that this funding has been withdrawn.

Despite not receiving any funding from Government the Council recognised the impact the LCTSS had on parishes and in the spirit of partnership and supporting parishes had continued to compensate parishes for some of their loss. It was therefore proposed that for the 2019/20 the compensation given to parishes remained unchanged from 2018/19.

RESOLVED

(i)          to note the calculations of the tax base in Annexes A to F summarised below:

(ii)        to note that the changes to Council Tax discounts made by Executive on 7 January 2014 under the freedoms given in the Local Government Finance Act 2012 and relevant statutory instruments remain unchanged for 2019/20;

(iii)      that £19,943.44 be given to Parishes in 2019/20 to offset the effect on the tax base of the Local Council Tax Support scheme; and

(iv)      that the final setting of the Tax Base be delegated to the Executive Head of Finance.

RECOMMENDED to Full Council that

(i)          the Local Council Tax Support Scheme for Surrey Heath, approved by Council on 22 January 2013, remains unchanged for 2019/20;

(ii)        the Council Tax Exceptional Hardship Policy remains unchanged for 2019/20;

(iii)      from 1st April 2019 young people who have left care (care leavers) will receive a full reduction from Council Tax until their 25th birthday;

(iv)      authority be delegated to the Executive Head of Finance to make minor changes to the Local Council Tax Support scheme so as to ensure that where applicable to income calculation it remains in line with Housing Benefit / Universal Credit changes introduced by legislation; and

(v)        incomes and applicable amounts and non-dependant deductions are uprated in line with the percentages and amounts supplied by DWP and DCLG, and applied to Housing Benefit claims.