Issue - decisions

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 471 which would generate an additional income of £103,000 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 considered and supported the proposal to remove the 28 day Council Tax discount for an empty unoccupied and substantially unfurnished properties. It was noted that Surrey County Council had stated that any additional income generated by the reduction in empty property relief normally due to them would be returned to Districts to support community services. The 28 day unoccupied and substantially unfurnished discount was currently worth approximately £190,000.

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.

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 was now zero it was reasonable to assume that this funding had 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 2020/21 the compensation given to parishes remained unchanged from 2019/20.

The Executive agreed that the LCTSS andCouncil Tax Exceptional Hardship Policy should remain unchanged in 2020/21; however, it was agreed that a review of both those schemes would be undertaken over the next 12 months.

RESOLVED

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

(ii)      that £19,943.44 be given to Parishes in 2020/21 to offset the effect on the tax base of the Local Council Tax Support scheme; and

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

RECOMMENDED to Full Council that

(i)        the 28 day Council Tax discount for an empty unoccupied and substantially unfurnished property be removed for these properties using the freedoms given in the Local Government Finance Act 2012 and relevant statutory instruments;

(ii)      the Local Council Tax Support Scheme for Surrey Heath, approved by Council on 22 January 2013, remain unchanged for 2020/21;

(iii)     the Council Tax Exceptional Hardship Policy remain unchanged for 2020/21;

(iv)     a review of the Local Council Tax Support Scheme for Surrey Heath and the Council Tax Exceptional Hardship Policy be undertaken over the next 12 months;

(v)      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

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