Agenda item

Report No: EXC/SA/18/018

Shadow Executive (Cabinet) Members: Stephen Edwards and Ian Houlder

Lead Officer: Greg Stevenson

RECOMMENDED TO SHADOW COUNCIL (18 December 2018)

That:

(1)     the tax base for 2019/2020, for the whole of  West Suffolk is 55,056.11 equivalent Band D dwellings, and for each of the predecessor areas is: Forest Heath 18,313.11 and St Edmundsbury 36,743.00, as detailed in paragraph 1.4.3 of Report No: EXC/SA/18/018; and

(2)     the tax base for 2019/2020 for the different parts of its area, as defined by parish or special expense area boundaries, are as shown in Appendices 3 and 4 to Report No: EXC/SA/18/018.

The Shadow Executive (Cabinet) considered the above report which sought approval for the formal calculation for the council tax base for the financial year 2019/2020.

The council tax base was the total taxable value at a point in time of all the domestic properties in the council’s area. It is a yearly calculation and represented the estimated number of chargeable dwellings after allowing for exemptions and discounts, projected changes in the property base and after applying an estimated collection rate.

The total taxable value referred to above was arrived at by each dwelling being placed in one of eight valuation bands (A – H) by the Valuation Office, with a statutorily set fraction then being applied in order to convert it to a ‘band D equivalent’ figure.  These band D equivalent numbers were then aggregated at a district wide level and were also sub totalled for parishes.  This calculation had to be done by the council responsible for sending the bills out and collecting the council tax ('the billing authority’).  In two tier areas, district councils fulfilled this function.

The council tax base was used in the calculation of council tax.  Each authority divided the total council tax income it needed to meet its budget requirement by the tax base of its area to arrive at its band D council tax. The same fractions referred to in the previous paragraph were then used to work out the council tax for properties in each of the other bands.

Orders had been laid allowing West Suffolk to harmonise the council tax of Forest Heath and St Edmundsbury over a period not exceeding seven years. Because of this, it was necessary to calculate tax base figures for both areas currently covered by Forest Heath District Council and St Edmundsbury Borough Council (the “predecessor areas”).

Councillor Ian Houlder, one of the Shadow Executive (Cabinet) Members with the responsibility for Resources and Performance, drew relevant issues to the attention of the Shadow Executive, including that the band D properties figures as at 1 October 2018 was 18,749.2 for Forest Heath and 37,354.8 for St Edmundsbury which was 55,056.11 for the whole West Suffolk district.  This was an increase of 348.67 for Forest Heath and 252.05 for St Edmundsbury on the previous year, and was therefore 600.71 for the whole West Suffolk district.

The calculations applied to reach these figures were detailed in the report. 

In line with the delegated authority to administer the Council’s financial affairs as outlined in the Constitution, the arrangements for the scheduling of the precept payments for 2019/2020, would be determined by the Assistant Director (Resources and Performance) (Chief Financial Officer).

It was expected that the payments schedule for all parish and town councils in West Suffolk would be full payment of the precepts by 30 April 2019. These would be in accordance with Appendices 3 and 4 attached to the report.

RECOMMENDED TO SHADOW COUNCIL (18 December 2018):

That:

(1)     the tax base for 2019/2020, for the whole of  West Suffolk is 55,056.11 equivalent Band D dwellings, and for each of the predecessor areas is: Forest Heath 18,313.11 and St Edmundsbury 36,743.00, as detailed in paragraph 1.4.3 of Report No: EXC/SA/18/018; and

(2)     the tax base for 2019/2020 for the different parts of its area, as defined by parish or special expense area boundaries, are as shown in Appendices 3 and 4 to Report No: EXC/SA/18/018.