Agenda item

Revenues and Benefits Policies for 2023-24

The purpose of this report is to update Members on the policies governing the administration of Revenues and Benefits and seek approval for the updates and amendments highlighted.

Council Tax Discretionary Discount and Council Tax Support Hardship Schemes 2023-24

The report proposed that Members implement:

a)       a one-off discount equivalent to a 1.00% reduction in Band D council tax (Northumberland County Council element of council tax only) for households that do not receive Council Tax Support (subject to a number of exclusions shown at paragraph 4.9). The discount will be equivalent to £17.21 in 2023-24 and will be applied to council tax bills once all other discounts have been applied.

b)       a Council Tax Support Hardship Scheme for 2023-24 where a reduction of up to £175 will be made to council tax bills for all working age Council Tax Support claimants; and those pensionable age Council Tax Support claimants that do not receive 100.00% Council Tax Support, once all other discounts have been applied.

c)       These reductions to the council tax bills will be made in order to alleviate financial hardship and cushion the impact of the Government’s recommended 2.99% council tax increase.

d)       The discount and hardship payments will be funded from the surplus remaining in the Collection Fund Smoothing Reserve which the Council was required to set aside as a result of the Covid-19 pandemic. It is proposed that a reserve entitled Council Tax Support Hardship and Discretionary Discount Schemes Reserve is created to cover the cost of these schemes.

The recommendations were moved by Councillor Wearmouth and seconded by the Leader.

A number of questions and comments were made including:-

•         Councillor Robinson asked if residents would have to claim or would the discounts be applied automatically. Members were informed that both discounts would be automatic.

•         Councillor Morphet asked about the transfer of £6.6m into a dedicated reserve to cover the three expenses identified. The S151 Officer replied that she was estimating what the cost would be at the moment but the proposal was to transfer the whole of the balance into a separate reserve to fund the schemes. If there was money left in the reserve at the end of the year, that would be for Council to decide how it should be used.

•         Councillor Dickinson welcomed any support scheme for residents and to help those most in need.

•         Councillor Reid remarked he would have preferred a plan for an alternative use of this funding rather than it being used to discount council tax bills.

•         Councillor Hill supported the proposals and suggested that it would be helpful to see details of what town and parish councils spent their precept on, as there were cases where the majority of it went on staffing and administration. 

On the recommendations being put to the vote by show of hands, the votes were cast as FOR: a substantial majority; AGAINST: 2; ABSTENTIONS:0.

It was therefore RESOLVED:-

(a )     Council agree a Council Tax Support Hardship Scheme, where a reduction of up to £175 is made to council tax bills for all working age Council Tax Support claimants, once all other discounts have been applied.  The cost of this scheme will be £2.633 million;

(b )     Council agree a Council Tax Support Hardship Scheme, where a reduction of up to £175 is made to council tax bills for all pensionable age Council Tax Support claimants, once all other discounts have been applied.  The cost of this scheme will be £0.551 million;

(c )     Council agree that a local discretionary discount equivalent to 1.00% of the proposed Band D council tax for 2023-24 (Northumberland County Council, council tax element) is applied to council tax bills in 2023-24 (only), following the application of all other discounts, for all households not in receipt of Council Tax Support; and excluding the exemptions shown in paragraph 4.9.  The discount equates to £17.21 per household.  The cost of this scheme will be £2.140 million; 

(d )     Council agree to transfer the balance of £6.588 million from the Collection Fund Smoothing Reserve in financial year 2022-23 to a reserve entitled Council Tax Support Hardship and Discretionary Discount Schemes Reserve to cover the cost of these schemes;

(e )     Council agree to fund the proposed Council Tax Support Hardship Schemes described in 2.1 and 2.2 above, up to a maximum of £3.184 million from the Council Tax Support Hardship and Discretionary Discount Schemes Reserve for 2023-24;

(f )      Council agree to fund the proposed Local Discretionary Discount as described in 2.3 above, up to a maximum of £2.140 million from the Council Tax Support Hardship and Discretionary Discount Schemes Reserve for 2023-24;

(g )     Council agree that once the above-mentioned allocations are exhausted that no further Hardship Scheme or Local Discretionary Discount payments are made in 2023-24; and

(h )     Council agree that the appropriate expenditure and income budgets are created in the financial year 2023-24 in line with the agreed recommendations in 2.1 to 2.6.