Agenda item

Report of the Partnerships and Performance Section Head

This report provides an update on the consultation on the proposed local Council Tax Support Scheme for Watford.

The Partnership and Performance Section Head gave a presentation on feedback from the consultation on Local Council Tax Support.  She explained that those invited to participate had included working-age recipients of Council Tax Benefit.  She added that reminder letters had been sent to this target group, which had increased the number of respondents; there had been 433 replies which was considered to be a good response per head of population.   

The Partnership and Performance Section Head referred to the report and noted the options for changing the current discounts as presented in the survey and responses and comments received from participants.  She then drew the Panel’s attention to the options for changing the exemptions. 

The Head of Revenues and Benefits advised that the results of the survey were clear.  He said that the Department of Communities and Local Government (DCLG) had just announced a transitional (one year) grant which would be available subject to certain criteria.  He noted, however, that if the Council’s proposed scheme (as outlined in the report) were substantially different from the criteria now set out by the DCLG a further consultation would be required. 

Councillor Derbyshire observed that 4% of possible respondents had taken part; it was evident that the preferred option was to make changes to the exemptions.  Councillor Derbyshire agreed that this would be a wise move as this should maintain the current level of collection.   He said, however, that financial validation of the proposal should be a requirement. 

In reply to a question from Councillor Jeffree, the Head of Revenues and Benefits advised that savings made by changing current discounts would equate to:

            Option 1:        £24,000

            Option 2:        £60,000

            Option 3:        £310,000

Councillor Khan considered that the optimum choice would be to change the exemptions as detailed in Options 4 to 7.  He believed that Option 2 (to make non-dependent deductions) would affect many families and would not be a good choice.

The Head of Revenues and Benefits countered that this option had been the preference of 62% of the respondents.  He felt that it was imperative that the outcome of the survey should be evaluated.  He noted that Equalities issues would also be considered as the local scheme was developed. 

The Head of Strategic Finance pointed out that it was important that consideration be given to the transitional grant.  He advised that options 1 to 3 be examined, possible shortfalls noted and due weight be accorded to how the situation could be improved in the following year.  He informed the Panel that a report would be presented to Cabinet for the 5 November meeting to present information on what the transitional grant might mean for Watford. 

Councillor Aron asked whether, in the event that Options 4 to 7 were implemented, this would mean that levels of support would in no cases be reduced by more than 17%.  

The Partnership and Performance Section Head agreed to circulate figures which would explain these calculations. 

ACTION:         Partnership and Performance Section Head

Councillor Derbyshire agreed that Options 4 to 7 would be the optimum choice but that a financial assessment was necessary before a firm decision could be made. 

The Portfolio Holder for Finance and Shared Services advised that changing exemptions would reduce the impact of current discounts for recipients.

RESOLVED –

1.      that the Panel notes the findings of the consultation

2.      that the options for changing exemptions be presented to Cabinet