Agenda item

Calculation of the Council Tax Base for 2015/16

-           Strategic Director of Resources and Transformation Services to report.


Councillor Hoddinott, Deputy Leader, introduced a report by the Strategic Director of Resources and Transformation, which set out the calculation of the Council’s proposed Council Tax base for the forthcoming financial year 2015/16.   The calculation of the Tax Base took into account: the Council’s own Local Council Tax Reduction Scheme (CTRS), the discretionary discounts and exemptions awarded to empty properties and second homes, future tax collection rates (96.5%) and estimates of the changes and adjustments in the tax base that occur during the financial year. 


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 be 65,477.52 Band D Equivalent Properties.


From 2013, technical changes in Council Tax Regulations allowed the Council to reduce the discretionary discounts awarded to empty properties and second homes and in some cases charge tax premiums.  For 2015/16 these have been rolled forward at the same levels as in 2014/15.


The Council Tax Base in previous years had included estimates and projections reflecting the changes and adjustments in the Tax Base that occur during the financial year.  These have included:-


·                The completion of new properties;

·                Changes in banding as a result of adjustments and appeals;

·                Discounts, exemptions and reliefs (for example, single person discounts, and reductions in liabilities for disabled persons).

·                The ending of the discount period on empty properties or their reoccupation. 


For 2015/16 it was estimated that some 728.55 new and reoccupied Band D Equivalent properties would be added to the Council Tax base - an increase of 1.1%.  This increase was significantly higher than in recent years and reflected the recovery of the construction industry in the town as the number of new builds and the rate of completions had increased and was now above even the estimates (including those provided by builders last year) which had been built into the MTFS.  The most significant growth had been in relation to the Waverley development in the Parish of Orgreave, where the number of Band D properties was increasing by 57% or 133.66 Band D equivalents.  There had also been 6.0% - 103.92 Band D equivalent properties growth in Thurcroft.   Not only have more properties been built but the new properties were more likely to fall into the higher value Council Tax bands – bands D-F having increased by 2.3% on average.  Finally, the Council’s decision in 2013/14 to use new discretions to reduce the discounts on empty properties from nil for 6 months to 25% for 3 months combined with the already robust approach to the issuing of completion notices has meant that new properties are promptly included in the tax base. 


In addition to new build properties the tax base had also increased as a result in the reduction in the cost of the Council’s Council Tax Reduction Scheme and the number of working age claimants.  Overall the 2015/16 Tax base showed a net increase of 2.0% or 1,298.51 Band D equivalent properties compared with the 2014/15 Tax Base of 64,179.01 Band D Equivalents.  This increase in Band D equivalent properties would generate additional Council Tax yield of £1.6m in 2015/16.  £937k of this increase had already been reflected in the MTFS, meaning that the additional new tax yield to support the Council’s 2015/16 budget will be £691k. 


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 Appendix 1 attached as part of the report.       


The Tax Base for the Council as a whole (both parished and unparished areas) was made up as follows: allowing for the additions, discounts and reliefs the estimated property base be converted into Band D Equivalent properties, giving a total of  65, 477.52 Band D Equivalents.


Tax Band

Band D Equivalent Properties

Band A


Band B


Band C


Band D


Band E


Band F


Band G


Band H

















Recommended:-  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 2015/16 shall be a total of 65,477.52 Band D Equivalent Properties.  

Supporting documents: