This report provides the report and recommendations of the Scrutiny Challenge Session report on the issue of the London Borough of Tower Hamlets Council Tax Reduction Scheme.

The Committee received a report that detailed the report and outlined recommendations of the Scrutiny Challenge Session report on the issue of the London Borough of Tower Hamlets Council Tax Reduction Scheme (CTRS).

The main points of the discussion may be summarised below:

The Committee noted that:

·         The Local Council Tax Reduction Scheme (LCTRS) challenge session had been chaired by Councillor Marc Francis in his role as Scrutiny Lead for Resources in order to examine the impact of proposed changes to the Council’s LCTRS as highlighted in a report to Cabinet in July 2018 and these proposed changes are currently being consulted on and are due to be presented to the Cabinet prior to a formal decision being taken at Full Council in January 2019;

·         The scrutiny challenge session had been underpinned by five core questions:

1.    Are the proposals in the Cabinet Report the best options for residents of Tower Hamlets?

2.    What is the financial impact of these proposals on our vulnerable residents and what support can the council offer?

3.    Are other London councils applying the Minimum Income Floor (MIF) and is this appropriate for self-employed residents?

4.    How are self-employed residents supported through the impact of LCTRS and how is Section 13A being implemented to support these groups?

5.    What support is in place to mitigate the need to instigate council tax debt recovery and support?

·         Noted that HM Revenues and Customs latest poverty profile shows that Tower Hamlets is the 10th most deprived local authority in England in terms of its average deprivation score with 18,8751children living in poverty. Census figures found that 78 percent of Bangladeshi residents lived in households receiving council tax benefit, compared with 33 percent of other (non-Bangladeshi) residents;

·         Noted that the Challenge Session had identified that clarity was needed on how the changes will affect those families being disproportionately impacted by the revisions to the CTRS is therefore understandably at the heart of the review and a focus for recommendations;

·         The use by private firms of bailiffs to collect Council tax debt should be reviewed and the Council should consider a more ethical approach to debt management that helps residents at risk of falling into debt;

·         Proper income and expenditure assessments should be carried out to agree what families in debt can pay and over what period. Whilst those who can afford to pay but refuses to do so should be pursued using effective; ethical and legal processes e.g. to have an ethical way of working with individuals in debt to resolve their financial problems – protecting the vulnerable while maximising the money collected.

DECISION

1.    To agree that officers should go out to consultation on Option 4 with all of the changes listed (as set out in Appendix 2 to the report).

2.    To note that officers will bring a report, setting out feedback from the consultation, back to the October Cabinet prior to a formal decision being taken.

Action by:

CORPORATE DIRECTOR, RESOURCES (Z. COOKE)

(Benefits Policy and Procedures Manager (L. Fearon)

(Head of Benefits Service (S. Hill)

The Mayor introduced the report proposing a number of options for consultation on the Local Council Tax Reduction Scheme. He noted the Pre-Decision Scrutiny Questions and officer responses.

Following discussion the Mayor agreed to go out to consultation on Option 4 with all of the changes as listed in the Appendix to the report.

RESOLVED

1.    To agree that officers should go out to consultation on Option 4 with all of the changes listed (as set out in Appendix 2 to the report).

2.    To note that officers will bring a report, setting out feedback from the consultation, back to the October Cabinet prior to a formal decision being taken.