Issue - meetings

Report of Interim Head of Finance and Procurement

Purpose of Report

To consider the calculation of the Council Tax base for 2014/15.

Recommendations

The meeting is recommended:

 1.1        To approve the report of the Head of Finance and Procurement, made pursuant to the Local Authorities [Calculation of Tax Base] [England] regulations and the calculations referred to therein for the purposes of the Regulations.

1.2         To resolve that, in accordance with the Regulations, as amended, the amount calculated by Cherwell District Council as its council tax base for the year 2014/15 shall be 47,609.

1.3         To resolve that the tax base for parts of the area be in accordance with the figures shown in column 13 of appendix 2.

1.4         To resolve to continue with any discretionary and locally set discount awards which it previously has resolved to give.

Resolved

(1)          That the report of the Head of Finance and Procurement, made pursuant to the Local Authorities [Calculation of Tax Base] [England] regulations and the calculations referred to therein for the purposes of the Regulations (annex to the Minutes as set out in the Minute Book) be approved.

(2)          That it be resolved that, in accordance with the Regulations, as amended, the amount calculated by Cherwell District Council as its council tax base for the year 2014/15 shall be 47,609.

(3)          That it be resolved that the tax base for parts of the area be in accordance with the figures shown in column 13 of appendix 2 to the report (annex to the Minutes as set out in the Minute Book).

(4)          That it be resolved to continue with any discretionary and locally set discount awards which the Executive previously has resolved to give.

The Interim Head of Finance and Procurement submitted a report which sought consideration of the calculation of the Council Tax base for 2014/15.

Resolved

(1)          That the report of the Head of Finance and Procurement, made pursuant to the Local Authorities [Calculation of Tax Base] [England] regulations and the calculations referred to therein for the purposes of the Regulations (annex to the Minutes as set out in the Minute Book) be approved.

(2)          That it be resolved that, in accordance with the Regulations, as amended, the amount calculated by Cherwell District Council as its council tax base for the year 2014/15 shall be 47,609.

(3)          That it be resolved that the tax base for parts of the area be in accordance with the figures shown in column 13 of appendix 2 to the report (annex to the Minutes as set out in the Minute Book).

(4)          That it be resolved to continue with any discretionary and locally set discount awards which the Executive previously has resolved to give.

Reasons

The collection rate used is a best estimate of the percentage of the total amount due for 2014/15. It is based on previous year’s collection rates. Over the most recent years, the amount collected has been steady at between 98.25% and 98.5% and there is no suggestion that this will change for 2013/14.

The change from council tax benefit to a local reduction scheme has had little impact on ability to pay and as the scheme remains the same for 2014/15 there should be no effect on the collection levels. New homes and businesses are being created across the district which should aid the economic situation generally.

It is therefore recommended to maintain the 98% collection rate used in previous years.

The estimate of adjustments applied to take account of new properties likely to become available during the year could be varied. However, the estimate is based on conversations with developers and known planning approvals and is factored downwards to allow for delays and other unforeseen problems.

The appendices to the report show the most up to date position of the Council Tax base and the adjustments have been made to take account of changes during 2014/15.

Alternative Options

Option 1: To reject the tax base calculation. The figures in this report could be rejected and a new calculation made. However, this would result in further delays for all preceptors in calculating their own precept to be levied on the Council. The figures used are taken from the Northgate i-World council tax system and are all accurate as at 1 December 2013. All other adjustments and estimates have been calculated using previous years methods.