Issue - meetings

A report of the Director of Finance detailing a Council Tax reduction scheme for 2025/26.

Councillor Jabbar MOVED and Councillor Shah SECONDED a report of the Director of Finance that presented to Council the proposed Council Tax Reduction Scheme for 2025/26.

There was a legal requirement to have a local Council Tax Reduction (CTR) scheme to support residents of working age on a low income who qualify for assistance in paying Council Tax. The Local Government Finance Act 2012 required that each year a billing authority must consider whether to revise its Council Tax Reduction scheme or to replace it with another scheme. Any change to the 2025/26 scheme must be agreed by full Council in line with budget setting arrangements and by no later than 10^th March 2025. Any proposed change must be subject to prior consultation with major preceptors (for Oldham this is the Greater Manchester Combined Authority on behalf of the Mayor of Greater Manchester and the Greater Manchester Police and Crime Commissioner) and with the public. The scheme for those of pensionable age is set by the Government and cannot be changed.

A major consultation exercise had not been undertaken regarding changes to the CTR scheme and the Greater Manchester Combined Authority had been provisionally advised that no change to the scheme was proposed.  In this regard, the proposal is that the CTR scheme for 2025/26 remains the same as that operating in 2024/25 and, therefore, no consultation exercise would be required.  The current CTR scheme provides a maximum reduction equivalent to 85% of the Council Tax charge for a Band A property and this has been unchanged since 2014/15.

There remained uncertainty around the extent that the transition of residents from legacy welfare benefits onto Universal Credit would have on a claimants’ household income and how this would then impact on the cost of an income banded scheme if it were to be introduced in 2025/26. The Council cannot currently accurately determine the level of income those transitioning residents will ultimately receive, which will be critical for an appropriate scheme design.

In view of the continued uncertainty concerning Universal Credit and the marginal impact of any practical change to the CTR scheme at this stage, it is recommended that the Council maintains the current CTR scheme during 2025/26.

RESOLVED:

That the Council approves the proposal, detailed in the submitted report, to keep the Council Tax Reduction Scheme unchanged in 2025/26.

A report of the Director of Finance detailing a Council Tax reduction scheme for 2025/26.

Purpose of the report:

The purpose of the submitted report was to present to Council the proposed Council Tax Reduction Scheme for 2025/26, prior to consideration by Council on 6^th November 2024.

Reasons for the Recommendations:

Cabinet was advised that there is a legal requirement to have a local Council Tax Reduction (CTR) scheme to support residents of working age on a low income who qualify for assistance in paying Council Tax. The Local Government Finance Act 2012 requires that each year a billing authority must consider whether to revise its Council Tax Reduction scheme or to replace it with another scheme. Any change to the 2025/26 scheme must be agreed by full Council in line with budget setting arrangements and no later than 10 March 2025. Any proposed change must be subject to prior consultation with major preceptors (for Oldham this is the Greater Manchester Combined Authority on behalf of the Mayor of Greater Manchester and the Greater Manchester Police and Crime Commissioner) and with the public. The scheme for those of pensionable age is set by the Government and cannot be changed.

Options/Alternatives:

The options that Cabinet considered in relation to the submitted report were:

Option 1: Maintaining the present level of support i.e., limiting the level of support at 85% of Council Tax for a Band A property as the maximum amount available.

Option 2: Introduce income banded scheme.

The recommended Option was Option 1.

Decisions:

1.    Cabinet recommends that the Council approves the report at its meeting on 6^th November 2024.

2.    Cabinet commends to Council the proposal to keep the Council Tax Reduction Scheme unchanged in 2025/26.

The Cabinet considered a report of the Director of Finance the purpose of which was to present to Council the proposed Council Tax Reduction Scheme for 2025/26, prior to consideration by Council on 6^th November 2024.

The Cabinet was advised that there was a legal requirement to have a local Council Tax Reduction (CTR) scheme to support residents of working age on a low income who qualify for assistance in paying Council Tax. The Local Government Finance Act 2012 requires that each year a billing authority must consider whether to revise its Council Tax Reduction scheme or to replace it with another scheme. Any change to the 2025/26 scheme must be agreed by full Council in line with budget setting arrangements and no later than 10 March 2025. Any proposed change must be subject to prior consultation with major preceptors (for Oldham this is the Greater Manchester Combined Authority on behalf of the Mayor of Greater Manchester and the Greater Manchester Police and Crime Commissioner) and with the public. The scheme for those of pensionable age is set by the Government and cannot be changed.

Options/Alternatives:

The options that Cabinet considered in relation to the submitted report were:

Option 1: Maintaining the present level of support i.e., limiting the level of support at 85% of Council Tax for a Band A property as the maximum amount available.

Option 2: Introduce income banded scheme.

The recommended Option was Option 1.

Resolved:

1.    That the Cabinet recommends that the Council approves the report at its meeting on 6^th November 2024.

2.    That the Cabinet commends to Council the proposal to keep the Council Tax Reduction Scheme unchanged in 2025/26.