Equalities, Human Rights and Civil Justice Committee

Meeting date: Tuesday, January 31, 2023

Official Report 601KB pdf

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Subordinate Legislation

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First-tier Tribunal for Scotland (Transfer of Functions of the Council Tax Reduction Review Panel) Regulations 2023 [Draft]

Our next item of business is consideration of an affirmative instrument. I welcome Elena Whitham, the Minister for Community Safety, and her Scottish Government officials: Lisa Davidson, civil justice senior policy officer, and Martin Brown, solicitor in the legal directorate.

I refer members to paper 1 and invite the minister to speak to the draft instrument.

Thank you, convener, and good morning, members.

The First-tier Tribunal for Scotland (Transfer of Functions of the Council Tax Reduction Review Panel) Regulations 2023 will, if approved, transfer the functions of the council tax reduction review panel to the Scottish tribunals structure that was created by the Tribunals (Scotland) Act 2014. The 2014 act created a new, simplified statutory framework for tribunals in Scotland by establishing the Scottish tribunals. The framework brings together existing tribunal jurisdictions and provides a structure for new jurisdictions.

The functions of the council tax reduction review panel and the valuation appeals committees, as well as certain functions of the Lands Tribunal for Scotland, are to be transferred to the Scottish tribunals on 1 April 2023. The regulations that cover the transfer of the functions of the valuation appeals committees and the Lands Tribunal for Scotland were considered at a previous meeting of the committee.

In relation to the regulations that are before the committee today, the council tax reduction scheme provides lower-income households with a reduction in their council tax liability. An applicant who is unhappy with their local authority’s decision on council tax reduction can ask for a review. If they are still unhappy following the review, they can apply to the council tax reduction review panel for a review of the local authority’s decision. The regulations transfer the existing functions of the council tax reduction review panel to the First-tier Tribunal for Scotland’s local taxation chamber and abolish the council tax reduction review panel.

Going forward, therefore, appeals of local authority decisions in relation to council tax reduction will be heard by the First-tier Tribunal local taxation chamber. The regulations also make consequential amendments to primary and secondary legislation resulting from the transfer of functions to the Scottish tribunals.

I understand that the Delegated Powers and Law Reform Committee considered the regulations on 10 January 2023. The DPLR Committee identified an incorrect cross-reference in the regulations. Officials have proposed that the instrument is amended prior to signing to correct the erroneous reference. The DPLR Committee noted the proposal for rectifying the error and agreed that the instrument should be drawn to the attention of the Parliament on general reporting grounds.

I am happy to answer any questions.

Thank you very much. It is always good to see the DPLR Committee doing its work so diligently. These are often very technical matters and it is good that the process works.

Good morning. In its submission, the Child Poverty Action Group in Scotland states that it welcomes claimants being able to make challenges through the tribunal system, but it suggests that the social security chamber of the First-tier Tribunal would be a more appropriate place to deal with council tax reduction issues. Has the Government considered that? Why did it not make amendments to the regulations in that regard?

Thanks for that question. The Government was very aware of CPAG’s response during the consultation process.

The United Kingdom Government’s Welfare Reform Act 2012 abolished council tax benefit, removing council tax support from the benefit system. In response, the Scottish Government introduced the council tax reduction scheme, which creates a schedule of means-tested reductions to an individual’s council tax liability. It is important to point out that council tax reduction is not a benefit and is not administered by Social Security Scotland, which is what the social security chamber deals with. Rather, council tax reduction reduces applicants’ liability for council tax. It was a policy decision that all appeals relating to council tax, including council tax reduction, should be heard by the local taxation chamber, as they are issues that relate to local taxation.

In drawing up the regulations, Government officials were mindful of the complexities around council tax reduction and about the people who may be bringing cases to the local taxation chamber. The officials may want to elaborate a little bit on that.

I am happy to say a few words on that.

The aspects that we took into account included the obligation to treat people coming before the tribunal in accordance with the overriding objectives, which I think are set out in the regulations that the committee will be looking at next. However, there is an overriding objective that requires people to be treated fairly in the course of the tribunal proceedings. That would be the case, whatever chamber they came to.

On council tax reduction in particular, we took steps in the procedures to ensure that, if there was failure to comply with the rules for any reason, that would not be the end of proceedings—it could be forgiven in certain circumstances. To follow up what was just said, we took into account those concerns as we were drafting the instrument. Do you want to add anything to that, Lisa?

Thank you, but I do not think that there is anything else to add.

Thank you—I appreciate that. I am content with that description and answer.

On the basis of taking that approach, what information can the Government set out in terms of the training or support that will be provided to the members of the chamber to which the issue has been allocated so that they understand some of the complexities? Although I appreciate what has been said about social security—this is council tax reduction; it is not a benefit—what specific support have members of the chamber been given so that they understand the complexities that some families may experience?

Thank you for that further probing question, which requires a good answer.

Several existing members will be transferring to the local taxation chamber and they will carry their really good working knowledge with them. There is a thorough training package in place for any new members of a chamber, regardless of which chamber it might be.

We will ensure that people who are appointed to the chamber understand the very issue that you have raised in relation to dealing with the complexities of such cases, in which an element of discretion and understanding might be needed to ensure that people can access the justice that they are looking for.

Thank you.

Good morning, minister. Thank you for being here and for your answers so far.

My question is on exactly the same line as Pam Duncan Glancy took. I will make a final point in that regard. I hear what you said about the training and support that the members of the chamber will have. However, if they identify a potential issue, will there be the opportunity for them to signpost people to further support and advice from Social Security Scotland? From the information that they have, they might identify opportunities for the individuals to apply for benefits that they are not claiming, even though they are eligible for them. How do we close the circle by linking what is, as you said, a taxation system with the social security system, which should provide support?

It is important that we recognise that the chamber will not be dealing with anybody’s underlying entitlement to anything. However, the signposting element of anybody’s work is really important. I might need to come back to the committee with a fuller answer on that point, but I have definitely heard what you and Pam Duncan-Glancy have said in that regard.

It is a communication issue; we need to ensure that people are aware of what is out there. Thank you.

As there are no further questions or comments, we will move to item 3, which is the formal business relating to the regulations.

I invite the minister to move motion S6M-07224.

Motion moved,

That the Equalities, Human Rights and Civil Justice Committee recommends that the First-tier Tribunal for Scotland (Transfer of Functions of the Council Tax Reduction Review Panel) Regulations 2023 [draft] be approved.—[Elena Whitham]

Motion agreed to.

That concludes consideration of the affirmative Scottish statutory instrument.

Do members agree to the clerks producing a short factual report on our deliberations on the affirmative instrument that we have considered today?

Members indicated agreement.

I thank the minister and her officials for attending.

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First-tier Tribunal for Scotland Local Taxation Chamber (Rules of Procedure) Regulations 2022 (SSI 2022/364)

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Upper Tribunal for Scotland (Local Taxation Rules of Procedure) Regulations 2022 (SSI 2022/365)

Under item 4, we will consider two negative SSIs. I refer members to paper 2.

As no members have any comments on the instruments, there will be no reporting on them.

I will suspend the meeting briefly to allow the Minister for Equalities and Older People and her officials to take their places at the table for item 5.

10:13 Meeting suspended.  

10:15 On resuming—