Agenda item

The Council considered a report of the Corporate Director of Resources which sought approval for the continuation of the current Local Council Tax Reduction Scheme (LCTRS) for a further year into 2021/22, which would continue the protection afforded to all claimants in line with what their entitlement would have been under the former Council Tax Benefit system (for copy see file of Minutes).

In Moving the report Councillor A Napier, Deputy Leader and Cabinet Portfolio Holder for Finance, informed Council that he had championed the need to maintain the Council Tax Support Scheme for many years.  The Council had consistently protected the benefits payable under the Scheme to ensure the most vulnerable residents were supported.  It was more important than ever to continue to provide benefits through the Scheme that mirrored those that were in place before the Scheme was passed to local authorities.  Responsibility for the Scheme was passed to local authorities, together with an assumed 10% cut to the funding needed to deliver it.  It was because the Council had protected its Scheme that it had been able to provide additional support through the pandemic.  The Council had applied a further £300 reduction eligible resident’s council tax bills this financial year which had been a huge help to people who were struggling to pay bills and make ends meet.  The Council was also proposing to apply an additional £100 of council tax support for next year.  This, alongside the Council’s welfare support schemes, would ensure the Council was providing as much support as possible to local residents.

In Seconding the report, Councillor S Henig informed Council that he was delighted that Cabinet had resolved to recommend to Council that the current Local Council Tax Reduction Scheme be continued for another year.  Seven years after the government abolished the national council tax benefits system Durham was among a small number of authorities nationally to continue to offer working age residents up to 100% exemption from paying council tax and the only authority in the north-east to do so.  The Local Council Tax Reduction Scheme benefitted tens of thousands of residents across County Durham and this was more important than ever during the extremely difficult circumstances of the coronavirus pandemic.  The report showed that the Scheme had seen significant increased demand.

Resolved:

That:

(a) the current Local Council Tax Reduction Scheme into 2021/22, which will retain the same level of support to all working age council taxpayers on low incomes as was the case under the previous Council Tax Benefit Scheme be continued.

(b) the extension to the Scheme be initially for a further year only and be kept under continuous review with a further decision on the scheme to apply in 2022/23 to be considered by Cabinet in summer 2021 and Full Council by 11 March 2022 be agreed.