Agenda item

Briefing Note of the Director of Finance and Resources

The Finance and Corporate Services Scrutiny Board (1) received a briefing note of the Director of Finance and Resources that provided the Board with information about the City Council’s public consultation on revenue spending and savings proposals for 2025/26 and future financial years together with the approach in relation to Council Tax and the Adult Social Care precept, to enable them to make any comments as part of the consultation process.

At the meeting of Cabinet on 10th December 2024 (their minute 44/24 referred), approval was given for a seven-week public consultation period on revenue spending and savings proposals for 2025/26 and future financial years together with the approach in relation to Council Tax and the Adult Social Care precept. The consultation would close on 28th January 2025.

The report considered by Cabinet, together with Appendices, were attached as an appendix to the briefing note and provided: Appendix 1 - the Pre-Budget Proposals and Financial Position; Appendix 2 - the Council Tax Support Scheme; Appendix 3 – the Cumulative Equality Impact Assessment; and Appendix 4 - the Equality Impact Assessment on Council Tax Support 25-26.

The Consultation process was supported by further information on the Council’s website.

In considering the briefing note, the Board questioned officers, received responses and discussed matters as summarised below:

·  Provisional settlement awarded which would change the gap in the Council’s finances. The detail of the award was currently being worked through and the final situation not yet known.

·  The inclusion of Care Leavers, who had protected characteristics, in the Budget Proposals Equality Impact Assessment

·  The inclusion of Voluntary Organisations and the Community Sector, in the Council Tax Support Equality Impact Assessment.

·  Settlements were a 2-stage process - provisional figure from Government in December who then entered a consultation process, following which it moves to stage 2. The figures were very unlikely to change between the 2 stages.

·  Currently everyone had to pay at least 20 per cent Council Tax, the proposal would mean that the maximum Council Tax Support for working age households could be reduced from 80 per cent to 75 per cent.

·  Council Tax Support was means tested to assess the level of discount to be applied dependant on circumstances.

·  Consideration be given to those in the £0-£15 category, who appear to be disproportionally affected by the proposed Council Tax Support relief.

·  Consideration be given to the division of categories into those with and those without children, to take into consideration the additional costs of living for those with dependants.

·  Consideration to be given to how the public were made aware of the support that was available to them in respect of discretionary payment relief.

·  Details of the criteria set for the categories of protected characteristics.

·  Council Tax collection rate assumption made, and amount expected from a particular cohort adjusted.

·  The scheme for people of pension age was administered by local authorities but under a national legislative framework with no local discretion.

·  Without the provision of a banded Council Tax Scheme (broad income bands), an individual’s Council Tax could change at any time, as frequently as monthly.

·  Any savings proposals would be implemented from 1st April 2025.

·  There were 22 proposals of which 7 were listed as impact unknown. The impact of these would be considered on a case-by-case basis until the outcome of the proposal was determined.

·  Planning process for implementation of some proposals – e.g. reduction of senior officer posts could take 6-12 months to implement, in order to ensure due process was followed.

·  The Council Tax Support Scheme was a set claims process - applications would need to be made requesting a reduction, with evidence of eligibility. Those in receipt of certain benefits would automatically qualify.

·  Impact of the proposals – report to be submitted to the Board in 12-months’ time to enable them to review the outcomes and impacts of the implementation of the proposals.

The Board requested that the Cabinet Member for Strategic Finance and Resources be requested to give consideration to how the public were made aware of the support that was available to them in respect of discretionary payment relief. They also requested that, following the consultation and subsequent implementation of the Spending, Saving and Council Tax Proposals, a report on the outcomes and impacts of implementation be submitted to the Board in 12 months’ time.

The Board further requested that the issue of Care Leavers, who had protected characteristics, be referred to the Equalities Team requesting consideration of the inclusion of this category in the Budget Proposals Equality Impact Assessment.

And that the following matters be referred to the Head of Revenue and Benefits in respect of the proposed changes to the Council Tax Support Scheme:

1)  Consideration be given to those in the £0-£15 category, who appear to be disproportionally affected by the proposed payment increase.

2)  Consideration be given to the division of categories into those with and those without children, to take into consideration the additional cost of living for those with dependants.

3)  Members of the Board be provided with information on the criteria for the categories of protected characteristics.

4)  Consideration be given to the inclusion of Voluntary Organisations and the Community Sector, in the Council Tax Support Equality Impact Assessment.

RESOLVED that the Finance and Corporate Services Scrutiny Board (1):

1)  Recommends that the Cabinet Member be requested to give consideration to how the public are made aware of the support that is available to them in respect of discretionary payment relief.

2)  Following the consultation and subsequent implementation of the Spending, Saving and Council Tax Proposals, requests that a report on the outcomes and impacts of implementation be submitted to the Board in 12 months’ time.