The Chairman explained that this report was being brought back with numerous appendices so that Full Council could see all information and that he would be proposing that Cabinet recommend Council consider all the options proposed and did not state a preference.

The Portfolio Holder for Finance and Resources then presented the report which explained that at the Council meeting on 18 February 2014 it was resolved that “no Council Tax Support funding for Town and Parish Councils be issued as no money had been ring-fenced for this purpose in the Government Grant Settlement, and the approach be agreed and adopted”.  This was also recommended by Cabinet on 6 February 2014.

Westerham Town Council supported by Sevenoaks Town Council and Dunton Green Parish Council had said they intended to seek a judicial review of the decision as it was believed that the decision was not as clear as it could have been.  The Council Leader, Chief Finance Officer and Legal Services Manager had met representatives of the three Town and Parish Councils on 3 April 2014 and it was agreed that a report would be taken to Council on 13 May 2014 to give Members the opportunity to reconsider passing Council Tax Support funding to Town and Parish Councils.

The Chief Finance Officer advised that the amount of £274,000 had been ringfenced in in 2013/14 but not in 2014/15.  Town and Parish Councils had been advised that the funding may not continue in future years from January 2013.  In light of the potential judicial review Officers had obtained the advice of a leading Queens Counsel who had confirmed that Sevenoaks District Council had discretion whether to pass any funding on to Town and Parish Councils and that the Council should make a fresh decision.

In response to questions the Chairman explained that part of the focus of the application for judicial review was that the Council had made a fettered decision and therefore he was keen that all the options were considered by Full Council. He pointed put that if the Council did agree to pass on some of the money residents in Towns and Parishes which had raised their precept would in effect be taxed twice.  Many Members commented that their parishes would not know what to do with the money if passed on and it would end up in their reserves.  The main reason the report was coming forward was because the resolutions concerning this aspect had been part of a composite resolution agreed by Council and the advice received was that it needed to be shown to be a clear and considered separate decision.

Public Sector Equality Duty

Members noted the considerations given to impacts under the Public Sector Equality Duty.

Resolved:  That all of the following options be recommended to Council to consider:

a)    An amount of funding is passed to Town and Parish Councils for Council Tax Support in 2014/15 equivalent to the amount passed on in 2013/14 less 24% (the Council’s reduction in Revenue Support Grant);

b)    A different amount is passed to Town and Parish Councils for Council Tax Support in 2014/15;

c)    No funding is passed to Town and Parish Councils for Council Tax Support in 2014/15.