Purpose

A decision is required by the Shadow Authority on the structure of future Council Tax Support Scheme for the new authorities.

Decision

RESOLVED

That     (i)     the harmonisation of the Council Tax Support schemes across West Surrey, from 1 April 2027 be agreed in principle, subject to further consideration in September 2026;

            (ii)    a bid to the implementation programme board for funding from the implementation programme fund be supported, noting that the budget in respect of West Surrey Council’s proportion of the modelling and implementation costs will be £120,000;

            (iii)    it be agreed that, for modelling purposes, the central case as set out in the options section, is used as the central benchmarking for scheme modelling to compare the cost of different schemes;

            (iv)   it be noted that the Senior Responsible Officer of the Implementation Team, in consultation with the relevant Portfolio Holder, shall undertake a procurement exercise, in accordance with the West Surrey Shadow Authority Contract and Procurement Procedure Rules, on behalf of both East Surrey Shadow Authority and West Surrey Shadow Authority, for a contractor, and authorise Surrey County Council to enter into the relevant contracts for the work agreed under (ii) and (iii) above; and

            (v)    a report back be received in September 2026 with the outcome of the modelling and further recommendations for consideration of a harmonised policy.

Reasons for recommendation:

Regulations provide that the Shadow Authority should make reasonable efforts to prepare a council tax reduction scheme under section 13A(2) of the Local Government Finance Act 1992 before 1 April 2027 [all other new unitary authorities have harmonised on Vesting Day].  If this is not possible, then they legally must be harmonised by 31 March 2029.

Local CTS reduces the council tax liability for low-income households.  It is a highly visible local welfare policy because it directly affects how much residents are billed and what they can realistically afford to pay.

CTS design influences whether residents face manageable bills or are at risk of accruing greater arrears.  Even modest changes to awards, tapers, minimum awards or income rules can matters significantly for households already under financial pressure.

CTS rules shape billing, change in circumstances, discretionary decisions, recovery activity and resident enquiries.  A clearer, more consistent scheme may support simpler administration, although transition can still create short-term complexity.

CTS sits at the intersection of fairness, affordability and financial sustainability.  Decisions are therefore likely to attract scrutiny from members, residents, advice agencies and wider local partners.