RESOLVED

1.    That consultation will not be progressed with band H council tax residents to establish if a council tax voluntary scheme should be implemented.

2.    That any benefits to introducing the scheme would not outweigh the likely financial losses of implementation, as concluded in paragraph 2.23 of the Cabinet report.

The Deputy Leader and Cabinet Member for Finance presented the report, which had been brought to Cabinet for consideration following a resolution at a previous Council meeting.  He thanked the officers involved for their research into the feasibility of the Council introducing a similar voluntary community contribution scheme to that in place in Westminster, which was a way for residents in higher value properties to make a voluntary payment in addition to their council tax.  Following assessment of the data, it was not felt that this would be feasible in Merton.  Westminster had many more band H properties than Merton, and of those properties only approximately 3% made additional voluntary payments.  If a similar percentage of the Band H properties made additional voluntary payments, it was felt that would cost more to set up and administer the scheme than it would bring additional income in to the Council.  He thanked the Council for raising the matter and instead encouraged residents to support the voluntary sector organisations in the borough by making charitable donations.

The Director of Corporate Services advised that officers would continue to monitor similar schemes in other boroughs, for example Kensington and Chelsea who were in the process of implementing a scheme, however it was not financially viable for Merton to implement at this stage.

RESOLVED

1.    That consultation will not be progressed with band H council tax residents to establish if a council tax voluntary scheme should be implemented.

2.    That any benefits to introducing the scheme would not outweigh the likely financial losses of implementation, as concluded in paragraph 2.23 of the Cabinet report.