Issue - meetings

To consider a report of the Cabinet Member for Reform and Governance.

The Leader of the Council and Cabinet Member for Policy, Finance & Devolution (Councillor Alex Ganotis) submitted a report (copies of which had been circulated) detailing the annual review of the local scheme of Discounts and Exemptions which were available in respect of Business Rates and Council Tax.

RESOLVED – That approval be given to the following in respect of the Council Tax and Business rates Discounts and Exemptions:-

(1)       the Community Amateur Sports Club (CASC) Top-up scheme be continued for the year 2019/20, enabling CASCs to achieve 100% relief from Non-Domestic Rates, provided they met the qualifying criteria at Appendix 2;

(2)       the Charity Relief remain limited to the 80% Mandatory Relief for the year 2019/20;

(3)       the Rural Rate Relief continue to be limited to 50% Mandatory Relief for the year 2019/20 and should any village shops be established in the future then additional discretionary relief should be awarded up to 100%;

(4)       Stockport’s scheme for Discretionary Business Rate Relief post revaluation be maintained for year three and calculated as 15% of the increase in rates payable;

(5)       the 50% discount and qualifying criteria for Not for Profit organisations be maintained for the year 2019/20;

(6)       the local scheme for large businesses which were new to the Borough or those undergoing significant expansion in the Borough be continued for 2019/20;

(7)       the continuation of a case by case approach for Business Rates discounts where exceptional circumstances exist be continued for 2019/20 (it was unlikely that Exceptional Circumstances Relief would be awarded to an organisation which was in receipt of support from the Council, either grant funded or commissioned);

(8)       the local Council Tax Discount scheme be amended to reduce discounts to nil for properties that were empty & unfurnished (Class C) and those that were undergoing or having undergone, major repair work or structural alteration (Class D);

(9)       the premium charge added to Council Tax liability where a property has been unoccupied and unfurnished for more than two years is increased from 50% to 100% from 2019/20; 

(10)    any Council Tax liability for care leavers up to the age of 25 be reduced to zero for 2019/20;

(11)    Stockport’s Council Tax Support scheme is maintained for 2019/20 as detailed at Appendix 7;

(12)    DWP Universal Credit data sharing documents be treated as a claim for Council Tax Support;

(13)    new Council Tax Support claims following a break in entitlement to Universal Credit or Council Tax Support of up to six months were treated as being made on the date on which entitlement to Universal Credit resumed (or falls to a level at which CTS was payable) or six months before the day on which the claim was received, whichever was the later.

(14)    the Council Tax discretionary fund be refreshed to £100k for 2019/20, supporting customers facing financial difficulty, with no alternative means, with a further £100k being added to the fund per annum bringing the total to £200k; and

(15)      the setting of the Council’s 2019/20 Council Tax Taxbase at 95,100.8 Band D equivalent dwellings be noted.

To consider a report of the Leader of the Council and Cabinet Member for Policy, Finance & Devolution.

The Council is required to annually agree the scheme of local discounts and exemptions which are available against liability for Business Rates and Council Tax. This includes the localised Council Tax Support Scheme. 

This report summarises the impact of Business Rates and Council Tax discounts and exemptions and recommends that the schemes be maintained for 2018/19 with some recommended amendments:

·         The continuation of existing discretionary relief schemes for Business Rates

·         Changes/removal of Council Tax discounts in relation to empty and unfurnished properties

·         An increase in Council Tax premium charges for properties that have been empty for two or more years 

·         Changes in dealing with Council Tax Support claims from Universal Credit recipients

The Cabinet is invited to endorse the following and recommend the revised scheme to the Council Meeting:

·         That the Community Amateur Sports Club (CASC) Top-up scheme be continued for the year 2019/20, enabling CASCs to achieve 100% relief from Non-Domestic Rates, provided they meet the qualifying criteria at Appendix 2.

·         That Charity Relief remains limited to the 80% Mandatory Relief for the year 2019/20.

·         That Rural Rate Relief continues to be limited to 50% Mandatory Relief for the year 2019/20 and should any village shops be established in the future then additional discretionary relief should be awarded up to 100%.

·         That Stockport’s scheme for Discretionary Business Rate Relief post revaluation be maintained for year three and calculated as 15% of the increase in rates payable.

·         That the 50% discount and qualifying criteria for Not for Profit organisations be maintained for the year 2019/20.

·         That the local scheme for large businesses which are new to the Borough or those undergoing significant expansion in the Borough be continued for 2019/20.

·         That the continuation of a case by case approach for Business Rates discounts where exceptional circumstances exist be continued for 2019/20. It is unlikely that Exceptional Circumstances Relief would be awarded to an organisation which was in receipt of support from the Council, either grant funded or commissioned.

·         That the local Council Tax Discount scheme is amended to reduce discounts to nil for properties that are empty & unfurnished (Class C) and those that are undergoing or having undergone, major repair work or structural alteration (Class D).

·         That the premium charge added to Council Tax liability where a property has been unoccupied and unfurnished for more than two years is increased from 50% to 100% from 2019/20. 

·         That any Council Tax liability for care leavers up to the age of 25 be reduced to zero for 2019/20.

·         That Stockport’s Council Tax Support scheme is maintained for 2019/20 as detailed at Appendix 7.

·         That DWP Universal Credit data sharing documents are treated as a claim for Council Tax Support.

·         That New Council Tax Support claims following a break in entitlement to UC or CTS of up to six months are treated as being made on the date on which entitlement to UC resumes (or falls to a level at which CTS is payable) or six months before the day on which the claim is received, whichever is the later.

·         That the Council Tax discretionary fund is refreshed to £100k for 2019/20, supporting customers facing financial difficulty, with no alternative means. In addition if at 9.1.8 it is agreed to reduce Council Tax discounts in respect of empty properties to nil, to add a further £100k per annum bringing the total to £200k.

·         Note the increase in the Council’s Council Tax Taxbase if the proposed changes in this report are approved. The final 2019/20 Council Tax Taxbase will need to be set and presented for approval to the Council meeting on 18 January 2019. 

Officer contact: Alison Blount, 0161 474 5107, alison.blount@stockport.gov.uk

The Cabinet Member for Reform & Governance submitted a report (copies of which had been circulated) inviting the Cabinet to consider the outcome of a consultation on proposed changes to the Council Tax and Business Rates Discounts Scheme following the annual review. The report summarised the impact of Business Rates and Council Tax discounts and exemptions and recommended that the schemes be maintained for 2019/20 with some amendments, namely:

·          the continuation of existing discretionary relief schemes for Business Rates;

·          changes/removal of Council Tax discounts in relation to empty and unfurnished properties;

·          an increase in Council Tax premium charges for properties that had been empty for two or more years;

·          changes in dealing with Council Tax Support claims from Universal Credit recipients.

The Cabinet Member highlighted the positive steps that were being taken to assist those transitioning to Universal Credit and the ways in which the Council would seek to reduce barriers and delays in processing Council Tax discounts claims. She also emphasised that a portion of the savings that would be achieve by removing empty property discounts would be used to increase the discretionary fund available to support residents.

The Leader of the Council emphasised that consideration had been given to the responses received during the consultation but that many of the issues raised were not within the scope of the discount scheme and but were existing Council Tax exemptions that would remain in place.

RESOLVED – (1) That the revised Council Tax and Business Rates Discounts Schemes as set out in the report be endorsed and the Council Meeting be recommended to adopt them.

(2) That the increase in the Council’s Council Tax Taxbase if the proposed changes were approved and the presentation of the final 2019/20 Council Tax Taxbase to the Council meeting on 18 January 2019 be noted.

To consider a report of the Borough Treasurer

The Council is required to annually review the local scheme of Discounts and Exemptions which are available in respect of Business Rates and Council Tax.

Regulations allow for certain occupiers of non-domestic properties to be entitled to relief on the Business Rates payable. Some types of relief are mandatory but Local Authorities can further reduce the amount of Business Rates payable by awarding Discretionary Relief. Discretionary relief can either “top-up” mandatory relief or be awarded as a stand-alone discount. Stockport has agreed a number of local discounts for Business Rates.

The Council has also agreed a range of Council Tax discounts in respect of unoccupied properties with an exemption for care leavers and a localised Council Tax Support scheme, to help people who are on a low income.

The Scrutiny Committee is invited to consider the report and provide comments in relation to the proposed changes to the Schemes, as summarised in paragraphs 9.1.1 to 9.1.14 of the report.

Officer contact: Alison Blount, 0161 474 5107, alison.blount@stockport.gov.uk

The Borough Treasurer submitted a report (copies of which had been circulated) setting out the annual review of the Council’s local scheme of Council Tax discounts and exemptions, and detailing recommended changes to the Scheme.

The Cabinet Member for Reform & Governance (Councillor Elise Wilson) attended the meeting to response to councillor’s questions.

The Cabinet Member highlighted the consultation feedback and assured the Scrutiny Committee that many of the objections raised to the proposals were based on a misunderstanding of the scheme and the concerns raised were provided for in other schemes and through statutory exemptions.

Concerns were expressed that while the additional support for Care Leavers was welcomed, the sudden ceasing of the Council Tax discount may lead to difficulties for those individuals and that a tapering of the discount may be more helpful in supporting young people to budget appropriately.

RESOLVED – That the report be noted and the Council Meeting be recommended to approve the revised Council Tax and Business Rates Discount and Exemption Scheme.