A report by The Head of Financial Services / Deputy S151 Officer informed that the Council was required to establish a replacement Localised Support Scheme, for Council Tax Benefit (CTB) from April 2013. This was a key strand of the Government’s wider Welfare Reform review.

The Cabinet was informed that the Scheme brought with it reduced funding from Central Government, with the need for Wirral to consider how to address this reduction assessed at £3.15 million based on current, and increasing CTB spend.

The report set out the background and the options available and requested direction from Members on the type of Localised Scheme to be focused on for detailed consideration and adoption.

The Options were as follows:

·  Option One - A Localised Scheme that delivers £3.15 million savings but this is unlikely to have any reliable supplier software in time for January 2013.

• Option Two - A Localised Scheme mirroring the current CTB scheme with the current software, delivering the full level of awards and meeting the £3.15 million reduction in funding. This being delivered through increased Council Tax charges with the Council having to identify and agree which changes to Council Tax discounts and exemptions it will make, or utilise funds from other sources.

Option Three - As an alternative to Option 2 a Scheme mirroring the current CTB scheme with the current software, delivering a level of savings which is less than the £3.15 million. The savings coming from Council Tax charges for which the Council will have to identify and agree or from other sources.

Option Four - The Council chooses not to agree a Localised Scheme or the Government invokes its default scheme for year one.  If this is the preferred option and is acknowledged then no public consultation process has to take place.

The Cabinet noted that potential area for increased income was within the proposed Council Tax regulations going through Parliament as this may give Councils power over Council Tax exemptions and discounts on empty homes and empty properties under renovation. It was also noted that the Government had ruled out allowing any local change to the 25% single person discount.  The initial data profiling had assessed that the changes could rise up to £3.6 million (below) but took no account of the impact on the person’s ability to pay:

The Cabinet considered its Council Tax Income Options and agreed that owners should be encouraged to carry out repairs to Class A dwellings so it would be in appropriate to penalise them by removing exemptions.

RESOLVED:  That

(1)  the Cabinet confirms that Option Two is its preferred way forward for the development of the Localised CTR Scheme for 2013/14 to meet the minimum £3.15 million reduction in Government grant funding;

(2)   the removal of Council Tax Exemptions in respect of Class C and L dwellings, Second Homes Discounts and Long term empty property discount as detailed in the table above be the subject of consultation;

(3)  officers continue to analyse and monitor the impact of this reform on the residents of Wirral and the Council and present a further detailed report, for consideration, of the composition of a final scheme for 2013/14 taking account of direction provided by the Cabinet; and

(4)  the timescale as outlined in the report be approved.