Agenda item

To enable Cabinet to consider and agree for recommending to Full Council the following:

•    Local Council Tax Support Scheme 2024/25

•    Exceptional Hardship Policy

•    Discretionary Council Tax Exemptions, Discounts and Premiums for 2024/25

•    Annual MRP Policy Statement for 2024/25.

RESOLVED that Cabinet agrees that -

(a)    the LCTS scheme for 2024/25 remains the same as the current year (2023/24);

(b)    the Council Tax Exceptional Hardship Policy be as set out in Appendix B to the joint report; and

(c)    the discretionary Council Tax exemptions, discounts and premiums for 2024/25 be as set out in the appendices to the Portfolio Holders’ joint report.

RECOMMENDED TO COUNCIL that –

(i)    the LCTS, as set out as Appendix A to the joint report, be approved with the maximum LCTS award being 80% for working age claimants;

(ii)   the Assistant Director (Finance and IT), in consultation with the Housing and Planning Portfolio Holder, be authorised to undertake the necessary steps to implement the LCTS scheme from 1 April 2024;

(iii)  the locally determined council tax discounts, as set out in Appendix C, be approved;

(iv)  the council tax discount policy for young people leaving care, as set out in Appendix D, be approved;

(v)   the discretionary council tax premiums, as set out in Appendix E, be approved;

(vi)  a discretionary council tax premium of 100% is charged on properties occupied periodically (‘second homes’) from 1 April 2025;

(vii) the Assistant Director (Finance and IT), in consultation with the Housing Portfolio Holder and subject to (vi) above, be authorised to undertake the necessary steps to implement the council tax exemptions, discounts and premiums from 1 April 2024; and

(i)     the Annual Minimum Revenue Provision Policy Statement for 2024/25, as set out in Appendix F, be approved.

Cabinet considered a joint report of the Housing & Planning Portfolio Holder and the Corporate Finance & Governance Portfolio Holder (A.8), which sought its recommendations to Full Council regarding the following:

•    Local Council Tax Support Scheme 2024/25;

•    Exceptional Hardship Policy;

•    Discretionary Council Tax Exemptions, Discounts and Premiums for 2024/25; and

•    Annual MRP Policy Statement for 2024/25.

Having conducted the annual review of the above matters, the Portfolio Holders were proposing:-

(i)      to continue with the principles of providing financial stability wherever possible to Tendring claimants;

(ii)      to keep the 2024/25 LCTS scheme the same as for 2023/24, which provided for a maximum discount of 80% for working age claimants;

(iii)     to not make any changes to the associated hardship policy;

(iv)    to not make any changes for 2024/25 in relation to existing discretionary council tax discounts, exemptions and premiums (including discounts for young people leaving care;

(v)     to now charge from 1 April 2024 a 100% council tax premium on properties empty for one to five years;

(vi)    to introduce from 1 April 2025 a 100% council tax premium on properties occupied periodically (‘second homes’); and

(vii)    to not make any changes to the Annual Minimum Revenue Provision Policy Statement for 2024/25.

Cabinet was made aware that the Government were also considering introducing council tax premium exemptions as they had recognised that there were circumstances where it might not be appropriate for premiums to apply e.g. properties undergoing probate. It was understood that those would be mandatory exemptions, which would therefore be applied from 2024/25 alongside any newly enacted legislation.

Members were informed that, if it was agreed that no changes were necessary to the proposed LCTS scheme, there would be no need for public consultation. However, if any amendments were proposed and approved at Full Council in November 2023, then public consultation would be required before the final scheme could be agreed and adopted.  Consequently, if consultation was required, this Council would have to notify the precepting authorities that the final council tax base would be delayed and would not be available until late on in the budget cycle.

In order to proceed towards the implementation of an LCTS Scheme in 2024/25 along with the required council tax discounts, exemptions and premiums and an MRP Policy Statement:-

It was moved by Councillor M E Stephenson, seconded by Councillor Baker and:-

RESOLVED that Cabinet agrees that -

(a)    the LCTS scheme for 2024/25 remains the same as the current year (2023/24);

(b)    the Council Tax Exceptional Hardship Policy be as set out in Appendix B to the joint report; and

(c)    the discretionary Council Tax exemptions, discounts and premiums for 2024/25 be as set out in the appendices to the Portfolio Holders’ joint report.

RECOMMENDED TO COUNCIL that –

(i)    the LCTS, as set out as Appendix A to the joint report, be approved with the maximum LCTS award being 80% for working age claimants;

(ii)   the Assistant Director (Finance and IT), in consultation with the Housing and Planning Portfolio Holder, be authorised to undertake the necessary steps to implement the LCTS scheme from 1 April 2024;

(iii)  the locally determined council tax discounts, as set out in Appendix C, be approved;

(iv)  the council tax discount policy for young people leaving care, as set out in Appendix D, be approved;

(v)   the discretionary council tax premiums, as set out in Appendix E, be approved;

(vi)  a discretionary council tax premium of 100% is charged on properties occupied periodically (‘second homes’) from 1 April 2025;

(vii) the Assistant Director (Finance and IT), in consultation with the Housing Portfolio Holder and subject to (vi) above, be authorised to undertake the necessary steps to implement the council tax exemptions, discounts and premiums from 1 April 2024; and

(i)     the Annual Minimum Revenue Provision Policy Statement for 2024/25, as set out in Appendix F, be approved.