Agenda item

Report of the City Treasurer.

7.1       Steven Mair, City Treasurer, introduced the report that was a statutory requirement for local authorities to provide and would be required to subsequently be approved by Full Council following Cabinet approval. There were no changes proposed to the Council Tax Reduction Scheme and Council Tax discounts, apart from the recent Cabinet Member for Children Services approval of the granting of a 100% Council Tax discount for care leavers for a period of 3 years. It was also proposed that the Long Term Empty Property Premium be introduced at the maximum percentage allowed for by the relevant legislation.

7.2       Councillor Tim Mitchell, Cabinet Member for Finance, Property and Corporate Services, added that under the Government’s current proposals, the Council would be able to charge an additional 100% on Council Tax for long term empty properties, however this was subject to legislative implementation.

7.3       The Leader welcomed the initiatives in respect of long term empty homes and care leavers, the latter demonstrating the Council’s commitment as a corporate parent.

7.4       RESOLVED:

1.            That the Cabinet recommended that the Council approve the following recommendations for the financial year 2018/19:

(i)            that the Council Tax discount for second homes remains at 0%

(ii)           the Council Tax discounts for empty properties, including the discounts that replaced the previous Class A and C Council Tax exemptions, remain at 0% 

(iii)          that a Long Term Empty Property Premium is introduced at the maximum percentage allowed for by the relevant legislation

  (iv)       that the Head of Revenues & Benefits be given delegated authority to determine any individual local discount applications received from Council Taxpayers during the course of the 2018/19 financial year under section 13A(1)(c) of the Local Government Finance Act 1992. 

            2.         That the Cabinet recommended that the Council approve the same Council Tax Reduction Scheme for 2018/19 which has operated successfully since 2013/14 and noted that the scheme is based on the Default Scheme Regulations, updated to reflect changes made via the Prescribed Requirements Amendment Regulations and with War Disabled Pensions, War Widow, Pensions and Armed Forces Compensation scheme payments disregarded in full when calculating a claimant’s income.

3.            That the Cabinet recommended to the Council to resolve that the Council Tax Base for  2018/19 for the Whole City is 128,833.30equivalent Band D properties, for Montpelier Square alone 95.68 equivalent Band D properties and for Queen’s Park 3,406.61 equivalent Band D properties.

4.            That the Cabinet recommended to the Council to resolve that the figures as set out in decision 3 above for the Council Tax Base for 2018/19 be used by the Council to make a determination pursuant to the requirements of the Local Government Finance Act 1992.

7.5      Reasons for Decision

1.            The taxbase decision is sought in order that the Council complies with the requirements of the Local Government Finance Act 1992.

2.            The retention of the same levels of Council Tax discount, for empty properties and second homes will continue to deliver additional Council Tax income for the Council without disadvantaging any vulnerable members of the community.

3.            The recommendation to allow the Head of Revenues and Benefits to continue to determine any individual local discount claims will enable assistance to be given to individual Council Taxpayers if required, especially as there is no longer the ability for taxpayers to claim Discretionary Housing Payments (DHP) in relation to their Council Tax liability. This will also provide the mechanism for granting the new Council Tax discount for Care Leavers.

4.            The Council’s proposed Council Tax Reduction Scheme will ensure that the government’s 10% funding cut is not passed on to the borough’s working age claimants.

5.            The recommendation to introduce the Long Term Empty Property Premium is proposed on the basis that it aligns with the Council’s City for All agenda and helps meet the Council’s aim of a fairer Council Tax system for all residents.