Agenda item

Council Tax Support Scheme for 2023-24

The purpose of this report is to seek approval for the local Council Tax Support Scheme for 2023-24 to continue to provide support at a maximum level of 92% of council tax liability.

Council Tax Support Scheme for 2023-24

The report sought approval for the local Council Tax Support Scheme for 2023-24 to continue to provide support at a maximum level of 92% of council tax liability.

The report was presented by Councillor Wearmouth, detailing the key points. He proposed the recommendations which was seconded by the Leader.

The S151 Officer reminded members that this scheme had been in place since 2019-20. If members were not minded to accept Cabinet’s recommendation that it be accepted, there would be a requirement to undertake a full equality impact assessment and then formal consultation. The scheme had to be agreed by 31 January so the timetable would be very tight.

There had been extensive discussion at Scrutiny about other means of financial assistance and it was agreed that officers would look to continue the hardship scheme which had benefitted more low-income households. There was a current claimant caseload of just under 25,000 of which about 10,000 were pensioner households who would automatically get 100% relief, leaving around 15,000 working age claimants. The hardship scheme would assist all of these, but returning to 100% council tax support would not, and the latter would cost roughly double.

A number of member comments were made including:-

•         Councillor Dickinson commented that his group had tried unsuccessfully to have this scheme changed back for three years. The S151 Officer had referred to the rising number of claimants which was worsening with the cost of living crisis and it was very uncertain what the Government was going to do next. He stressed that the report’s recommendations had only be endorsed at Scrutiny on the Chair’s vote which showed that members felt it needed to be rectified.

•         Councillor Dunn advised that she would continue to advocate that the support scheme be returned to 100% and felt the Council should be lobbying Government to fund it. A simpler and easier manage system was essential which didn’t need to rely on emergency funding support. The Council should be supporting its residents as much as possible if it was truly committed to tackling inequalities. Scrutiny members had raised many concerns including a temporary 100% support option. 92% was not enough and she couldn’t support the recommendation but would note vote against it either as she did not want to jeopardise those receiving support who needed it.

•         Councillor Grimshaw reiterated her longstanding concerns about this and agreed with her colleagues that support should be at 100% given the existing pressures on low income families, in line with what Durham County Council provided.

•         Councillor Oliver commented that the support being planned would be more generous and would include more people than if the 100% council tax support was returned.

•         Councillor Foster asked why the planned support could not be provided alongside the 100% council tax support. It was very sad that so many people now had to reply on foodbanks to feed their children. Even those families who were working were struggling to make ends meet given the current cost of living.

•         Councillor Ball supported 100% support as she expected the council tax would rise again next year. Using foodbanks was becoming normal and that was wrong. If the Council could not provide 100% support when other authorities could, then there was something fundamentally wrong.

•         Councillor Ferguson commented that there was a lot of support available and the Council had a role to ensure that people were fully aware of what was available for them, rather than just simply increasing the support to a higher level. He questioned where the £1.3m would come from to fund the difference between 92% and 100%. Everything had a cost and he did not wish to see additional burden put on working people, who also needed support.

•         Councillor Bowman commented it was a reality that some people had no food. This was a disgrace in a country which was the 6th richest in the world. The Council should be supporting at 100% or existing poverty levels would be worse next Spring.

•         Councillor Morphet asked what he process would be if the Council did not approve the report’s recommendations and would it be possible that less support would be available as a result. The S151 Officer advised that the scheme had to be approved by Council by 31 January 2023. If they did not agree it could be sent back to Cabinet to reconsider, or an alternative motion could be moved for debate. Any change to the scheme would also require formal consultation.

Councillor Wearmouth then summed up and on the report’s recommendations being put to the vote there voted FOR: 33; AGAINST: 2; ABSTENTIONS: 20.

It was therefore RESOLVED that the Council Tax Support Scheme 1 be adopted as the Council’s local scheme for 2023-24.