Issue - meetings

Report of the Chief Executive on the localised Council Tax Support Scheme for 2021/22.

Cabinet recommended to Full Council that the localised council tax support scheme continued in 2021/22 to help people on low/no income to receive a reduction on their council tax.

Report of the Chief Executive on the localised Council Tax Support Scheme for 2021/22.

(1)       The Decision Taken

RESOLVED:

Cabinet recommend to Full Council that the localised council tax support scheme continued in 2021/22 to help people on low/no income to receive a reduction on their council tax.

(2)       Reasons for the Decision

The scheme fully protects pensioners, families with children under 5, as well as certain other vulnerable claimants.  For others, the assessed entitlement is calculated on 75% of the Council Tax bill.

Consultation has taken place with Hertfordshire County Council and the Hertfordshire Police and Crime Commissioner on our intention to continue with the same scheme.  Both bodies have responded in agreement.

The cost of the scheme is met through the collection fund, through a reduction of the Tax Base.  Based upon the latest information, the cost of the scheme for 2020/21 is likely to be £7.4M across all preceptors, an increase of £0.4M from 2019/20, largely because of the impact of the pandemic.  Because the cost is met through the collection fund, the impact upon the General Fund will be spread over the following 3 years.

The likely cost for 2021/22, which will impact the General Fund in 2022/23 and beyond, will be estimated as part of the budget setting process.

The likely adverse impact of Covid upon the Council’s share of the cost of the scheme for 2020/21 has been included within our estimated loss of Council Tax collections as part of our Covid financial impact paper discussed at the Cabinet meeting in August.