Minutes:
A report of the Director of
Finance was presented to outline the Council’s position and approach in regards
to the collection of Council Tax from Councillors and the obligations on
Councillors in relation to meeting payment requests. The report also provided information on
Councillors’ compliance with their legal duties in relation to the payment of
Council Tax.
The payment of Council Tax was a
statutory obligation, governed by the Local Government Finance Act 1992.
Payment of Council Tax was due at regular intervals, usually
on a monthly basis. Should non-payment
result in further action, the legislation was clear on the stages that could be
taken to secure payment.
Where payment was not made as
indicated on the bill, a reminder notice was issued within 14 days of the
amount becoming overdue. If payment was
still not forthcoming, the account would be selected for a summons and the full
year’s council tax would become payable.
If full payment was not received,
the Council would make a request to the Courts for a Liability Order. If granted, a Liability Order provided
additional powers to recover monies due.
In respect of Councillors, one of these powers was an attachment to the
Councillor’s allowances. If an
attachment was undertaken, a percentage of the Councillor’s allowance could be
deducted on a monthly basis until the amount due was cleared.
Middlesbrough Council had 46
Councillors, excluding the elected Mayor, and 87.5% of Councillors paid their
Council Tax by monthly direct debit, with the remainder choosing to pay by
cash on a monthly basis.
The legislation which governed
the payment of Council Tax and the obligations of Councillors was contained
within Section 106 of the Local Government Finance Act 1992 (LGFA 1992). This legislation made it a criminal offence
for any Councillor who had arrears of Council Tax outstanding for two months or
more to attend any meeting at which a decision affecting the Council’s budget
was to be taken, unless the Councillor concerned declared at the outset of the
meeting that they were in arrears and would not be voting on the decision for
that reason.
Checks made dated back to 2015,
confirmed that no Councillor had been excluded from voting, albeit a small
number might have fallen behind with payment.
All Councillors’ accounts were up to date and in some instances the full
year’s amount had been paid.
Revenues Service provided monthly
checks against each Councillor’s account.
Notification was forwarded to Democratic Services should any Councillor
hit triggers and fall behind with payment by two months or more.
It was highlighted that, although
the Service undertook these checks, the responsibility for meeting payment
obligations and raising non-payment issues, rested entirely with the
Councillor, as it also applied to any other resident within the borough. The
Council did not provide any variation in service that would result in
Councillors being treated preferentially over other residents.
It was accepted that payment
difficulties could arise, and support and payment plans could be put in place
for Councillors in the same way as they could for residents. Paragraph 27 of the Members’ Code of Conduct, attached at
Appendix A to the submitted report, provided that Councillors must, at the
earliest opportunity, make arrangements to repay. Any service response to this situation would
be dealt with confidentially, provided non-payment had not resulted in other
action.
Section 4 and Section 8 of the
Members Handbook, attached at Appendix B to the submitted report, provided Councillors with the information pertaining to S106
of the Local Government Finance Act 1992.
AGREED that the information provided was received and noted.
Supporting documents: