Agenda item

-           Director of Finance to report.

Councillor Akhtar, Deputy Leader, introduced a report by the Director of Finance, which provided details of the calculation of the Authority’s proposed Council Tax base for the 2014/15 financial year.  From April, 2013 with the Localisation of Council Tax Support (now described by the Government as the Council Tax Reduction Scheme (CTRS) the Council’s Tax Base was significantly reduced compared to 2012/13.  This was because under the Localisation of Council Tax Reduction Scheme, eligibility to what was previously Council Tax Benefit, was treated as a discount to the Tax Base.  

The Council’s Scheme for 2014/15 was reported to Cabinet on 16^th October 2013 where it was proposed that the Council continue with its current Council Tax Reduction Scheme, subject to making annual benefit adjustments notified by the Department of Works and Pensions (DWP). 

In determining the Council’s Tax base for 2014/5 the sustained impact of the welfare reform changes on the Council Tax collection rate had also been allowed for – the allowance for losses on collection had been increased from 3% to 3.5% giving an estimated collection rate of 96.5%.

The calculation also reflected the number of newly built properties being constructed and the empty properties brought back into use. 

In accordance with the Local Authorities (Calculation of Council Tax Base) Regulations 2012 governing its calculation, it was determined that the Council’s Tax Base for the financial year 2014/15 was 64,179.01 Band D Equivalent Properties.

The Regulations set out the formula for the calculation and the estimated Tax Base as shown in Appendix A.  The Council Tax Base was derived from the total number of properties within the Council’s area as at the 1st December 2013, which, in the opinion of the Government’s Valuation Office Listing Officer, were subject to Council Tax. 

After allowing for the additions, discounts and reliefs the estimated property base was converted into Band D Equivalent properties, giving a total of 64,179.01 Band D Equivalents. Appendix A provided details of the total for both parished and non-parished areas. 

For 2014/15 it was estimated that some 907 new and reoccupied Band D Equivalent properties would be added to the Council Tax base - an increase of 1.4%.  Overall the 2014/15 Tax base showed a net increase of just under 0.9% or 547.57 Band D equivalent properties compared with the 2013/14 Tax Base of 63,631.44 Band D Equivalents.

The result of applying the 96.5% collection rate to the Band D Equivalents for each of the parishes within the Borough and for the Borough as a whole was shown in the final column of the appendix attached to the report and was made up as follows:-

Recommended:-  (1)  That the current Council Tax Reduction Scheme for 2014/15 be adopted with the following revisions:-

(a)     Adjust the applicable amounts for working age claims to  mirror those  used in 2014/15 for Housing Benefit.

(b)     Increase  Non-Dependant deductions  to mirror those in the Council Tax  Reduction Scheme prescribed  requirements. 

(2)  That the amount calculated by Rotherham Metropolitan Borough Council as its Council Tax Base and those of the Parish Councils shown at Appendix A for 2014/15 shall be a total of 64,179.01Band D Equivalent Properties.