In July 2016 Solihull Metropolitan Borough Council (Solihull MBC) launched a consultation on proposals to change their Council Tax Reduction Scheme (Council Tax Rebate) from April 2017 and invited comments from interested parties. Under the Council Tax Reduction Scheme households with a low income can receive a reduction of up to 100% off their council tax bill depending on things like their income, savings and the size/income of the household. If Solihull MBC continues to provide the same level of support as present, the cost of the scheme is expected to rise significantly by 2019/20. This is in addition to further significant reductions in government funding. These funding reductions mean that Solihull MBC is looking at how best to make further savings. From April 2017, Solihull MBC is proposing to make some changes to the Council Tax Reduction Scheme, which, if agreed, will mean people of working age who are liable to pay the Tax will pay something towards their bill. Importantly, the scheme for people of pensionable age is set by the government and is not affected by any of the proposed changes.
Solihull MBC has re-launched the consultation as it has been asked to provide some additional information on increasing council tax as an alternative to changing the Council Tax Reduction Scheme. These alternatives are to:
- identify savings from other Council services of £6 million in 2019/20, rather than just under £4 million, or
- increase council tax by a further 0.71% (which could make the council tax increase 4.7% in 2017/18) to raise an extra £2 million by 2019/20. This would require the support of local council tax payers through a local referendum.
You can read the full draft proposal online at https://www.solihull.gov.uk/About-the-Council/Consultations/currentconsultations
To take part in the consultation visit: www.surveymonkey.co.uk/r/H398YDH.
A final decision will be made by the Solihull MBC in December 2016 and any changes to the scheme will take effect from April 2017.