The Mayor has agreed to consider the following item as urgent business.

To follow Appendix VII added 16 February 2026.

The Mayor confirmed with all Members in attendance that they had read the urgent report and Appendix.

In introducing the report, the Leader said its purpose was to recommend changes to the Council’s Council Tax Reduction Scheme with effect from 1 April 2026. He advised that Council had to approve the annual scheme and he said that in July 2025 the Policy & Resources Committee agreed to carry out a consultation in respect of the proposed changes, and those changes were agreed by the Policy & Resources Committee in January 2026.

The Leader of the SIA group sought and was given clarity, on the proposed removal of the minimum income floor for self-employed working-age claimants. He also referred to paragraph 5.6 of the report, noting that while the Council aimed to support residents, KCC had argued that higher discounts could discourage claimants from improving their employment. He further reminded Members that KCC had previously assured that their share of Council Tax collection would not increase, yet it had risen.

The Leader of the Liberal Democrat Group said Council Tax was a regressive, unfair tax that put pressure on those that could least afford it and Government should be looking at it as it was not fit for purpose. She said it was good that the Council had taken steps to alleviate the pressure of people in the borough that most needed it.  She drew attention to the report’s reference to “work incentive issues,” noting that this formed part of what had been described as ‘Alarm Clock Britain’. She expressed concern that this rhetoric implied that people on low incomes did not already work hard or set an alarm to go to work, and suggested it further implied that they should simply obtain better‑paid employment, despite such opportunities not being readily available. She urged that the Council take a strong stance against this narrative.

The Leader of the Reform UK Group drew Members’ attention to paragraphs 5.7 and 5.8 of the report, noting that both the Fire Brigade and the Police and Crime Commissioner opposed the changes. He also referred to the period of austerity from 2010 to 2015 and the continuing impact it had on the public and public services, which he said was forced on the public by the coalition government at the time. He questioned whether the longer term negative impacts had fully been considered, and advised that, for these reasons, he could not support the recommendation.

Councillor Thompson (Green Group) stated that it was unacceptable that residents in employment required subsidies because they were not being paid a fair wage and were then unfairly taxed. He also highlighted the disparities between those living in high-value properties and the rest of the community and he supported the updated Council Tax Reduction Scheme.

Members were invited to speak and comments included:

·         Valuation office delays in setting Council Tax bands for new properties meant residents were unable to plan household bills without confirmed banding;

·         asked the Leader and Mayor to write to Government to increase staff at the valuation office, in order to cope with increased new development;

·         it cost more money to collect the Council Tax from the small group of residents that could not afford it and were entitled to 10% discount, than it did to implement the policy;

·         the Council should be supporting its most vulnerable residents and this scheme would help; and

·         queried the financial costs of the scheme broken down by the recommendations.

The Chief Executive advised that the valuation office had already been written to. The Section 151 Officer explained that the costs of implementing the scheme were already included in the budget agreed earlier in the meeting.

The Deputy Leader stated that decisions made by KCC had implications for all precepting authorities and he drew attention again that SBC received only 9% of the Council Tax which was significantly less than KCC received. He reminded Members that questions about the scheme and the report could have been put to the Policy & Resources Committee when the item was discussed at their meeting in January 2026.

In summing up, the Leader spoke in full support of the scheme.

In accordance with Procedure Rule 3.1.19 (2), a recorded vote was taken and voting was as follows:

For: Councillors Last, Bowen, Brawn, Harrison, Wooster, Perkin, Bonney, Cheesman, Hunt, Noe, Jayes, Golding, Pollard, Miller, Booth, Wise, Paul Stephen, Ben J Martin, Marchington, Simon Clark, Sarah Stephen, Nundy, Winckless, Tim Gibson, Baldock, Jackson, Charles Gibson, Whiting, Carnell, Cavanagh, Speed, Moore, Watson and Thompson. Total equals 34.

Against: Councillors Richard Palmer, Chris Palmer and Mishchuk. Total equals 3.

Abstain: None.  Total equals 0.

Resolved:

(1)  That a scheme offering a maximum 100% Council Tax Support be agreed.

(2)  That the percentage support in income bands 2 to 4 be increased by 10%.

(3)  That the income thresholds for each band by the welfare benefit uplift applied by the Department for Work and Pensions (DWP) for 2026/27 be increased.

(4)  That the minimum income for self-employed working age claimants be removed.

(5)  That the Council Tax Reduction Scheme with DWP benefits be aligned by disregarding the additional compensation payments listed in paragraph 2.20.

(6)  That delegated authority be given to the Director of Resources and the Head of Revenues and Benefits to update and publish the Council Tax Reduction Scheme (CTRS) policy in line with the agreed recommendations.