Agenda item

Report of Head of Finance and Procurement

Purpose of report

To consider the calculation of the Council Tax base for 2015/16.

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 2012 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 2015/16 shall be 48,253.

1.3         To resolve that the tax base for parts of the area be in accordance with the figures shown in column 10 of Appendix 2.

1.4         To resolve to recommend to full Council that it continue with any discretionary and locally set discount awards which it previously resolved to give as follows:

a.    Unoccupied and unfurnished discount for maximum period of 6 months without reoccupation of 6 weeks in between – 25% discount.

b.    Unfurnished and uninhabitable discount for a maximum period of 12 months without reoccupation of 6 weeks in between – 50% discount

c.    Second home (non-work related) discount – 0% discount.

d.    Furnished properties 0% discount for second homes.

e.    Empty and unfurnished long term empty property discount - 0% discount.

Resolved

(1)          That the report of the Head of Finance and Procurement, made pursuant to the Local Authorities [Calculation of Tax Base] [England] Regulations 2012 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, in accordance with the Regulations, as amended, the amount calculated by Cherwell District Council as its council tax base for the year 2015/16 shall be 48,253.

(3)          That the tax base for parts of the area be in accordance with the figures shown in column 10 of Appendix 2 (annex to the Minutes as set out in the Minute Book).

(4)          That Full Council be recommended to continue with any discretionary and locally set discount awards which it previously resolved to give as follows:

a.    Unoccupied and unfurnished discount for maximum period of 6 months without reoccupation of 6 weeks in between – 25% discount.

b.    Unfurnished and uninhabitable discount for a maximum period of 12 months without reoccupation of 6 weeks in between – 50% discount

c.    Second home (non work related) discount – 0% discount.

d.    Furnished properties 0% discount for second homes.

e.    Empty and unfurnished long term empty property discount - 0% discount.

(5)          That authority be delegated to the Section 151 Officer, in consultation with the Lead Member for Financial Management, for final approval of the Council Tax Base for 2015-2016.

The Head of Finance and Procurement submitted a report to consider the calculation of the Council Tax base for 2015/16.

Resolved

(1)          That the report of the Head of Finance and Procurement, made pursuant to the Local Authorities [Calculation of Tax Base] [England] Regulations 2012 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, in accordance with the Regulations, as amended, the amount calculated by Cherwell District Council as its council tax base for the year 2015/16 shall be 48,253.

(3)          That the tax base for parts of the area be in accordance with the figures shown in column 10 of Appendix 2 (annex to the Minutes as set out in the Minute Book).

(4)          That Full Council be recommended to continue with any discretionary and locally set discount awards which it previously resolved to give as follows:

a.    Unoccupied and unfurnished discount for maximum period of 6 months without reoccupation of 6 weeks in between – 25% discount.

b.    Unfurnished and uninhabitable discount for a maximum period of 12 months without reoccupation of 6 weeks in between – 50% discount

c.    Second home (non work related) discount – 0% discount.

d.    Furnished properties 0% discount for second homes.

e.    Empty and unfurnished long term empty property discount - 0% discount.

(5)          That authority be delegated to the Section 151 Officer, in consultation with the Lead Member for Financial Management, for final approval of the Council Tax Base for 2015-2016.

Reasons

The collection rate used is a best estimate of the percentage of the total amount due for 2015/16. 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 2015/16.

The change from council tax benefit to a local council tax reduction scheme has had little impact on ability to pay and as the scheme remains the same for 2015/16 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 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 as at 1 December 2014. All other adjustments and estimates have been calculated using previous years methods.