Decision details

To consider the report of the Cabinet Member for Resources updating Council Policy in regard to the Older Persons council tax discount of 10% for households where all occupants are over 65 and the 100% discount for Special Constables where a special constable resides and serves in the City of Southampton, from 1 April 2013.

(i)  Considers the issues set out in this report and determines whether or not they wish to update the current discretionary Council Tax reduction scheme which is in place under S13A of the Local Government Finance Act 1992.

(ii)  Recommends that Full Council:

(a)  Notes and considers the responses from the consultation process and the Equalities Impact Assessment as set out in paragraphs 7 to 13 and Appendix 1.

(b)  Applies any changes resulting from an update of the Council Tax reduction scheme in respect of the “pensioners” element of the Scheme, to all persons who meet the current qualifying criteria which is that it is available to persons who are:-

a)  liable to pay Council Tax either jointly of in their own right, by being an owner occupier or a tenant of a dwelling within Southampton, which is their sole or main residence;

b)  aged 65 or over and all other residents of the household are 65 or over; and

c)  not in receipt of Council Tax Benefit.

c)  Applies any changes resulting from an update of the Council Tax reduction scheme in respect of the “Special Constable” element of the Scheme, to all persons who meet the current qualifying criteria which is that it is available to persons who are:-

(a) Special Constables: and

(c)  reside in a property within Southampton where there is a liability for Council Tax and serve as a Special Constable within Southampton.

d)  Updates the current discretionary Council Tax reduction scheme and reduces the level of reduction in respect of the “pensioners” element to zero.

e)  Updates the current discretionary Council Tax reduction scheme and reduces the level of reduction in respect of the “Special Constable” element to zero.

f)  Authorises the Chief Financial Officer (CFO) to take any further action necessary to give effect to the recommendations in this report.

1.  The current discretionary Council Tax reduction scheme which is in place under S13A of the Local Government Finance Act 1992 was implemented for pensioners in 2009 in response to specific circumstances, as set out in paragraph 14, with the objective of mitigating the impact of Council Tax increases on those whose annual income levels ware limited to inflation factors.  It is appropriate to review this given that Council Tax increases have been low with several years of no increases whilst inflation has been rising more quickly and wages have been increasing more slowly and in some cases falling.

2.  The scheme was extended in 2010 to offer a discount to Special Constables to address specific objectives, which had been identified originally in 2009, through the achievement of increased recruitment.  When approved it was also acknowledged that the success of the discount in meeting this aim should be reviewed periodically.

3.  The proposed changes will raise additional revenue for the Council and therefore help protect local services and so better meet current objectives at a time when national funding for local Councils is being withdrawn.

1.  Members need to consider whether the objectives and aims which were identified in 2009 in response to specific circumstances have changed.

2.  Having considered this then the discounts could be retained or amended with changes made to the individuals to which the discounts apply, the level of the discounts or both.

3.  These options have been rejected for reasons which are set out in the main body of the report.