Agenda item

This report provides an update on the progress in devising a local scheme to provide support to Council Tax payers.

The Panel received a report of the Head of Revenues and Benefits which provided an update on the progress in devising a local scheme to support Council Tax payers.  An additional document had been circulated to Members following the publication of the agenda which set out the consultation proposals.

The Chair informed the Panel that he owned property which was rented out to tenants and that they might be affected by a new scheme.  He stated that he was not personally affected.  He asked Members if they were content for him to remain at the meeting or whether he should withdraw.

The Panel agreed that the Chair could remain and take part in the discussion.

Members discussed the suggested changes to the discounts and exemptions that the Council might be able to introduce.  It was suggested that a taper might be set as it would not be sensible if the administration costs outweighed the expected income.  Members agreed that any removal of exemptions or discounts may help to get properties rented or sold.  The Panel was generally in favour of maximising these options. 

Councillor Rackett suggested that the Council also needed to consider how it could help landlords to ensure their properties were let, for example providing contacts with social landlords.

Councillor Meerabux commented that it was important to allow landlords time to get properties back into decent order.  He was concerned that people might be encouraged to leave properties to become 'shoddy'.

The Head of Revenues and Benefits (Shared Services) replied that the theory was that the time properties were empty would be reduced.  Housing would welcome landlords putting their properties forward for use.  He advised that some landlords, however, did not like renting their property to people in receipt of benefits.  Revenues and Benefits did not hold information about why properties were empty.  The service was only aware if they were empty and unfurnished or undergoing major repair works. 

The Panel also discussed the various options for changes to the scheme which would affect those in receipt of Council Tax Benefits.  They were concerned about the impact on this vulnerable sector of the community.  The responsibility for achieving the required savings should be placed on the empty properties.  It was felt that the Equality Impact Assessment had an important role in determining the right procedure.  Members also believed that it was important to see the result of the consultation with the current recipients and vulnerable groups.

The Head of Revenues and Benefits (Shared Services) advised Members that the interim consultation report would be presented to Budget Panel in October.

Councillor Derbyshire stated that it was difficult to make any firm decision as there was insufficient information available.  He suggested that a table could be produced to show the comparisons between the current and proposed schemes.

Members also referred to the suggestion of a countywide scheme.  It was agreed that it was difficult to give a definitive answer.  Councillor Martins said that his concern with a countywide scheme was that Watford had a different demographic and different deprivation levels to the rest of the county. 

The Head of Strategic Finance reminded Members that Watford would need to find 16% of the overall required savings, which could, as a last resort, be covered by using available reserves if agreed by Members.  The County Council, however may not have that luxury.  It would have to identify £588,000 of compensating savings and might feasibly decide to reduce expenditure in Watford in order to claw back the savings it needed to find.  Watford therefore could not be complacent.

The Head of Strategic Finance then outlined the discussions from the Herts Leaders' meeting the previous evening.  He added that officers from across the County would be meeting on 18 June to discuss a countywide scheme.  A report would then be presented to the Leaders' meeting in July.

The Chair thanked the Head of Revenues and Benefits (Shared Services) for attending and answering Members' questions. 

RESOLVED –

that the Panel's comments be noted.