Agenda item

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

The purpose of this report is to propose 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.

Budget 2023-24 and Medium-Term Financial Plan 2023-27 for the Housing Revenue Account

The report sought Council approval for the updated Budget 2023-24, Medium Term Financial Plan (MTFP) 2023-27 and 30-year Business plan for the Housing Revenue Account (HRA).

The recommendations were moved by Councillor Wearmouth and were seconded by Councillor Watson and Councillor Wearmouth detailed the key points.

Councillor Dickinson asked, of the 70% of residents who received council rent benefit, was that 100% of their rent, or was it 70% up to the cap, and did the rise of 7% take many people up to the cap position. The Head of Housing advised that those receiving benefits would either be getting 100% now or partial contribution to the rent so the rental increase would still qualify for additional benefits so there would be no adverse impact on those residents. Regarding the 30% of tenants who did not have housing benefit or universal credit, they may be impacted by virtue of them moving up to those benefit areas. At this point in time, he could not provide a definitive answer. The granular detail of residents’ income was not held within the Authority but the uptake of the hardship fund would be monitored.

Councillor Reid commented he could not support a 7% rise when the Government had told local authorities to reduce rents by 1% and he did not agree that tenants should pay for a mistake the Government had made. He queried the Deputy Leader’s introductory comments on the report that the affordable homes target could not be met if the rents were not raised and felt this was wrong.

Councillor Horncastle reported that there would be some in depth training for members on affordable housing as it was a complex subject.

Councillor Hill reiterated the need for more social housing.

On the recommendations being put to the vote there voted FOR: 30; AGAINST: 20; ABSTENTIONS: 2.

RESOLVED that:-

(a )     Council approve the Housing Revenue Account 2023-24 budget as detailed within Appendix 1, which will reduce the balance on the HRA reserve from £29.809 million at 31 March 2023, to £29.121 million at 31 March 2024; and note the indicative budgets to 2026-27 which will reduce the balance of the HRA reserve to £9.294 million;

(b )     Council note that from 1 April 2023, due to current rises in inflation, the government has imposed a rent cap on social housing rent increases of 7.0%, moving away for one year from the previously agreed Rent Standard of consumer price index (CPI) +1.0% (11.1%). The budget detailed in Appendix 1 assumes that rents will rise by the revised Government capped rate of 7.0%, with recoverable service charges rising by CPI 10.10% plus 1.0% for the period 1 April 2023 to 31 March 2024;

(c )     Council approve the increase of 7.0% for Housing rents from 1 April 2023;

(d )     Council approve the increase of 11.1% for Housing Service Charges from 1 April 2023;

(e )     Council approve the Non-Recurrent Growth item Hardship fund of £0.350 million for 2023-24 to support NCC tenants who may, due to their income, not be eligible to receive any financial assistance through existing benefits (Housing Benefit/Universal Credit/Discretionary Housing Payment) (detailed in point 9 &16);

(f )      Council note the indicative 30-year Housing Revenue Account business plan as detailed within Appendix 1;

(g )     Council approve the estimated pay inflationary increase for 2023-24 of 4.0% totalling £0.418 million (detailed in point 15);

(h )     Council approve the Non-Pay Inflation Schedule for 2023-24 totaling £0.738 million (detailed in point 15);

(i )      Council approve the Recurrent Growth as follows: 

a.                 Housing Disrepair of £0.250 million for 2023-24 to cover costs of housing disrepair mitigation/resolution (detailed in point 16). 

b.                 Additional staffing budget of £0.424 million for 2023-24 (detailed in point 16);

(j )    Council approve the Recurrent Saving in relation to the Introduction of phased Service Charges for Sheltered Housing tenants, with estimated additional income of £0.100 million in 2024-25 (50.0%), £0.155 million in 2025-26 (75.0%) and £0.212 million 2026-27 (100.0%) (detailed in point 17); and

(k )   Council note that £45.017 million has been set aside over the 4-year period 2023-24 to 2026-27 in the HRA Capital programme to invest in Affordable Housing. Details are set out in Appendix 1.