Issue - meetings

Report of Head of Finance and Procurement

Summary

To consider the calculation of the council tax base for 2012/13.

Recommendations

The Executive is recommended to:

(1)       Approve the report of the Head of Finance and Procurement, made pursuant to the Local Authorities (Calculation of Tax Base) Regulations 1992, as amended, and the calculations referred to therein for the purposes of the Regulations.

(2)       Resolve that, in accordance with the Regulations, as amended, the amount calculated by the Cherwell District Council as its council tax base for the year 2012/2013 shall be 50,615.

(3)       Resolve that the tax base for parts of the area be in accordance with the figures shown in column 13 of Appendix 1b.

(4)       Resolve to continue with the discretionary awards that it resolved to give on December 1 2009.

Recommendations approved.

The Head of Finance and Procurement submitted a report which sought consideration of the calculation of the council tax base for 2012/13.

Resolved

(1)       That the report of the Head of Finance and Procurement, made pursuant to the Local Authorities (Calculation of Tax Base) Regulations 1992, as amended, and the calculations referred to therein for the purposes of the Regulations be approved.

(2)       That, in accordance with the Regulations, as amended, the amount calculated by the Cherwell District Council as its council tax base for the year 2012/2013 shall be 50,615.

(3)       That the tax base for parts of the area be in accordance with the figures shown in column 13 of Appendix 1b (as set out as an annex to the Minutes in the Minute Book).

(4)       That it be agreed to continue with the discretionary awards that it resolved to give on December 1 2009.

Reasons

The Collection Rate to be used in the tax base calculation is a best estimate of the percentage of the total amount due for 2012/2013 that will be collected.  It is based on the level of in-year collection achieved in previous years.  Over recent years the in-year collection rate has increased each year, from 95.75% in 2000/01 to 98.38% last year.  The Collection Rate was last increased, from 97 to 98%, in the tax base calculation for 2007/08.  Actual in-year collection for 2010/11 was 98.38% and it is on target to achieve the same for 2011/12 financial year.

The issues that affect the collection rate estimate centre around the ability to pay.  With a recession beginning there will be a number of local residents whose ability to pay their council tax will be affected over the next year and these residents may not qualify for help through council tax benefits, in which case they may find it difficult to maintain their outgoings.

Given the unknown factors that will arise from the current economic situation in the next year it is to be recommended that the collection rate used in the tax base calculation remain at 98%.

The estimate of adjustments applied to take account of new properties likely to become available during the next year could also be varied.  The adjustments made, on the basis of the information obtained by the Service Assurance team take into account known planning applications and the progress that is to be made on them during the remainder of this year and next.

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