Agenda item

To consider the Local Council Tax Support Scheme and consultation for 2018-19.

Councillor Dean gave a report from the Scrutiny Committee’s discussion of this item.  He said the Committee had had the impression that residents had found this consultation hard to understand, as a consequence of which the Committee felt the consultation should in future be simplified, and should be combined with the budget consultation.  Scrutiny members had agreed that the contribution cap should remain at 12.5%, but there had been some disagreement about the withdrawal of the grant which the District Council had been making to the parish councils for the loss of the tax base that the LCTS caused.  There was concern and puzzlement over a swing in public voting on this matter in the consultation, as in previous years the public had supported the reduction of the grant but had responded to the contrary this year.  The Committee had concluded that it supported the contribution cap of 12.5% and the withdrawal of the grant to parish councils. 

Councillor Howell said that even if the Council made no changes it was still required to consult on the next year’s scheme.  This was a very complex subject and was the one most subject to scrutiny.  He noted the scheme was in its fifth consecutive year of having the lowest contribution rate in Essex, a fact of which the Council could be proud.  He spoke in detail about each area of the recommendation.  Regarding the grant paid to parish councils, in 2013/14 the Government had provided transitional funding for the first two years, so that the Council could pass on that benefit.  The Revenue Support Grant (“RSG”) paid to the Council had subsequently been reduced and in 2018/19 the Council would receive no RSG. 

Councillor Howell said an objection had been received from Thaxted Parish Council to the reduction to zero of the grant to town and parish councils.  It was important to note that whilst it had provided this support whilst receiving RSG, the Council would not receive RSG in future, and it was not withholding funding from town and parish councils by no longer paying a grant towards them under the LCTS. 

Turning to the contribution percentage under the Scheme, Councillor Howell said consultation responses from a majority of residents had shown support for the cap to remain at 12.5%, although approximately a third of residents did not support this figure.  The Scheme operated as a “cliff edge”, with those not falling within the criteria having to pay 100% Council Tax.  It was important to listen to these views.  However, the consultation was not a referendum, and he was not persuaded to change his recommendation to Full Council. 

Councillor Barker seconded the motion, and asked whether there was any information on why the number of pensioners seemed to have reduced. 

The Director of Finance and Corporate Services said the age of respondents had been the subject of comment at Scrutiny Committee.  41% of them were aged under 54, with 56% aged 55 and over.  Fewer than 10% were under the age of 24.  The Committee suggested use of social media and consideration by the Youth Council for future consultations. 

Councillor Rolfe said those in the lower age range were least likely to be paying Council Tax, and noted the fact that the consultation had been sent to the household rather than to individuals. 

RESOLVED to recommend for approval to Full Council the proposals for the 2018/19 LCTS scheme:

1.    The 2018/19 LCTS scheme is set on the same basis as the 2017/18 scheme and therefore the contribution rate is frozen for the fifth consecutive year.

2.    The Council continues to protect Vulnerable and Disabled Residents and Carers on a low income.

3.    The discretionary subsidy grant for Town & Parish councils is withdrawn.