Council Tax Support in 2014 cut again

Apparently there is going to be a further 8.5% cut in the CT support budget in England in 2014.  That’s a DCLG announcement, rather than Treasury, so whether Wales and Scotland get hit as well is unclear.

... and now DCLG have denied this, even though members of the Local Government Association say that ministers told them about the cuts at a meeting this week.

From DCLG
Localising Council Tax Support & Council Tax – Communications Update 10 January 2013
This communications update is being sent in response to a number of queries we have received following some media articles which suggest a further reduction in funding for local council tax schemes.
That is not the case.
There is no reduction in the overall funding for council tax support for 2014-15. The allocation for England is £3.3bn in both 2013-14 and 2014-15, in line with 90% of forecast CTB expenditure. Details of this are set out in Key Tables 3 of the Settlement documentation. http://www.local.communities.gov.uk/finance/1314/KT3_1314.xls and http://www.local.communities.gov.uk/finance/1314/KT3_1415.xls
We have been clear for some time that funding for council tax support would be provided as part of the business rates retention scheme. Including the funding within the business rates retention scheme has been key to maximising the share of business rates and growth that is locally retained.
The Government consulted widely over the summer on the basis for distributing funding between authorities. Council tax support funding will only be separately identifiable in 2013-14 allocations. From 2014-15, the level of council tax support funding and formula funding combined will be scaled back for individual councils according to their combined spending trajectory, by service tier.
Ministers will of course consider all representations on individual authority allocations made during the current statutory consultation before making decisions on the final settlement.

Phew, that’s clearly all right then.

(I see they don’t mention that 3.3bn this year and 3.3bn next year might be a cut in real terms?)

The truth is that in reality the 10% cut advertised for next year is actually a lot closer to 18% in year 1 anyway. This is due to the fact that DCLGs estimated grant for 2013/14 already assumes a significant fall in the level of CTB that would have been granted next yeat if the system had not changed.

In my Council’s case, latest projections for this year (2012/13) shows we will get around £9,726,159 in subsidy for this year. Our “grant” for next year is £7,989,282.

Foolish simpletons like me think this is a 17.9% cut but the wise DCLG assume me it is only a 10% one.

Council Tax Support Schemes [ I am not sure if this is the right forum but perhaps if not my question can be re-directed ]. 
Under the new Act are Councils able to opt out of section 13a [1c] discretioanry discounts. ?

I see that some Councils are saying that as their new scheme does not make any reference to 13A [1c] it does not apply to the new scheme.

I had understood that as well the requirement to introduce a CTS scheme they would also be bound by the 13a [1c] part of the Act.

It was a very useful tool to obtain discretionary reductions under the old Regulations and I wonder if Councils are taking this opportumity to ditch it from their new schemes.

————————————————————————————————————————

No they can’t opt out it is specifically covered in the prescribed regs.

mmmmm Derby Council for one seem to think differently I understand

My reading of this goes something like this:

“13A Reductions by billing authority

(1)The amount of council tax which a person is liable to pay in respect of any chargeable dwelling and any day (as determined in accordance with sections 10 to 13)—

(a)in the case of a dwelling situated in the area of a billing authority in England, is to be reduced to the extent, if any, required by the authority’s council tax reduction scheme (see subsection (2));

(b)...

(c) in any case, may be reduced to such extent (or, if the amount has been reduced under paragraph (a) or (b), such further extent) as the billing authority for the area in which the dwelling is situated thinks fit. “

Firstly, it’s a power that they “may” apply.  That opens up the usual conditions around policies and ‘fettering discretion’.  As they have to ‘think fit’ in ‘any case’ then they must consider using the power.

Secondly, as they’ve already applied any reduction under their CTR scheme, under 13 (1) a, this stands apart from that and is purely a Council Tax reduction so it doesn’t matter whether their CTR scheme refers to it.

Schedule 7 All applicants: matters that must be included in an authority’s scheme – procedural matters

PART 3
Discretionary reductions
Procedure for an application to the authority for a reduction under section 13A(1)(c) of the 1992 Act
9.—(1) An application to an authority for a reduction under section 13A(1)(c)(a) of the 1992 Act may be made—
    (a) in writing,
    (b) by means of an electronic communication in accordance with Part 4 of this Schedule, or
    (c) where the authority has published a telephone number for the purpose of receiving such applications, by
    telephone.
(2) Where—
    (a) the authority has made a determination under section 13A(1)(c) in relation to a class of case in which liability
    is to be reduced; and
    (b) a person in that class would otherwise be entitled to a reduction under its scheme,
    that person’s application for a reduction under the authority’s scheme may also be treated as an application for
    a reduction under section 13A(1)(c).