Purpose

The Cabinet Member
is asked to:
 
(a) 
Review the current arrangement with collection authorities
(district/borough/city councils) to provide financial support and
incentive payment towards the cost of setting up and administering
local Council Tax Reduction Schemes (CTRS)
 
(b) 
Review the current arrangements with collection authorities to make
an incentive payment to support removal of discretionary empty
property discounts and charge empty property premiums
 
Reason for the
decision
 
A commitment was made as part of 2024-25
budget agreement that £19.8m of savings will need to be made
to replace the use of one-offs (reserves, capital receipts and time
limited grants) it is essential that all areas of discretionary
spending are reviewed.  This includes
considering savings where the Council is willing to remove cross
subsidy where there is no statutory requirement to provide support.
The current arrangements with district councils to support council
tax collection fall within this policy definition. 
 
 
Background –
Provide brief additional context
 
The current arrangements to
provide subsidies and incentives to collection authorities are a
long-standing agreement following changes introduced under the
Local Government Finance Act 2012 requiring collection authorities
to introduce local Council Tax Reduction Schemes (CTRS) following
the transfer of Council Tax Benefit (CTB) in 2013-124.  The Act also introduced additional flexibilities
on exemptions, discounts and premiums on empty
properties.  The original agreement on
CTRS subsidies and incentives was due to be reviewed on a 3-year
cycle, the first review was implemented in 2017 but there has been
no further review other than to simplify schemes based on income
bands
 
 
Options (other
options considered but discarded)

 
-     
Maintaining the current arrangements are not sustainable in the
current financial climate with the urgent need to focus on
statutory responsibilities   
-     
All areas of discretionary spending, including spending where there
is a mix of statutory and discretionary requirements and spending
on statutory services where there is most scope to make local
choices about levels of service provision
 
 
 
How the proposed
decision supports the
Framing Kent's Future - Our
Council Strategy 2022-2026
 
Framing Kent’s Future
(FKF), the KCC Strategic Statement, was approved at County Council
in May 2022 and sets out the council’s ambition and strategic
priorities until 2026. FKF acknowledged the significant financial
and demand pressures the council would be facing over the coming
four years, whilst concurrently delivering an ambitious agenda for
Kent residents, businesses, and local communities.
 
 
How the proposed
decision supports Securing Kent’s Future
 
Securing Kent’s Future
(SKF) included the objective to review policy choices and the scope
of the Council’s ambitions in response to the financial
challenges the council faces.
 
 
 

Decision

As Deputy Leader and Cabinet Member for
Finance, Corporate and Traded Services, I agree to:
 
(a) 
Cease the current arrangement with Billing Authorities pursuant to
which the Council provides financial support and incentive payments
towards the cost of setting up and administering local Council Tax
Reduction Schemes (CTRS) with effect from 1st April
2025.
 
(b) 
Cease the current arrangements with Billing Authorities pursuant to
which the Council makes incentive payments to support removal of
discretionary empty property discounts and charge empty property
premiums with effect from 1st April 2025.
 
(c) 
Delegate authority to the Interim Corporate Director Finance to
formally notify the Billing Authorities that payments will cease
from 2025-26 financial year and to take any actions or make any
decisions deemed necessary to the Interim Corporate Director
Finance to implement the decisions of the Cabinet Member for
Finance, Corporate and Traded Services in (a) and (b) above.