Issue - meetings

The Cabinet is requested to consider the agenda report and its four appendices and to make the following proposed resolutions:

(1)  That the council tax discounts to apply for the 2018-2019 financial year are:-

(a)   Nil discount for second homes (to include those with planning restrictions – (Prescribed classes A & B))

(b)   Nil discount for vacant, unoccupied and substantially unfurnished properties to include those properties which would previously have qualified for Class C exemption (Prescribed class C)

(c)   Nil discount for unoccupied properties which would previously have qualified for Class A exemption (properties in need of or undergoing major repair - (Prescribed Class D))

(2)  That an Empty Home Premium of 50% be charged for the 2018-2019 financial year.

(3)  That no additional locally defined classes of discount should be determined for the 2018-2019 financial year

(4)  In order to comply with section 35 of the Local Government Finance Act 1992, that the following resolutions are made:

(i) No item of expenditure shall be treated as “special expenses” for the purposes of section 35 of the Local Government Finance Act 1992;

(ii) This resolution shall remain in force for the 2018-2019 financial year;

(iii) The calculation of the Council’s taxbase for the year 2018-2019 is approved;

(iv)           The amounts calculated by the Council as its council taxbase for the year 2018-2019 for its area and each part of its area shall be those set out in appendices 1 and 2 to this report;

(v)            In order to offset some or all of the costs of Council Tax Reduction to local precepting authorities (Parish Councils), a grant is distributed as outlined in appendix 3 and described in paragraphs 6.4 of the agenda report.
 

RESOLVED

(1)  That the council tax discounts to apply for the 2018-2019 financial year are:

(a)   Nil discount for second homes (to include those with planning restrictions – (Prescribed classes A & B))

(b)   Nil discount for vacant, unoccupied and substantially unfurnished properties to include those properties which would previously have qualified for Class C exemption (Prescribed class C)

(c)   Nil discount for unoccupied properties which would previously have qualified for Class A exemption (properties in need of or undergoing major repair - (Prescribed Class D))

(2)  That an Empty Home Premium of 50% be charged for the 2018-2019 financial year.

(3)  That no additional locally defined classes of discount should be determined for the 2018-2019 financial year.

(4)  In order to comply with section 35 of the Local Government Finance Act 1992, that the following resolutions are made:

(i)        No item of expenditure shall be treated as “special expenses” for the purposes of section 35 of the Local Government Finance Act 1992;

(ii)      This resolution shall remain in force for the 2018-2019 financial year;

(iii)      The calculation of Chichester District Council’s taxbase for the year 2018-2019 is approved;

(iv)           The amounts calculated by the Chichester District Council as its council tax base for the year 2018-2019 for its area and each part of its area shall be those set out in appendices 1 and 2 to this report;

(v)            In order to offset some or all of the costs of Council Tax Reduction to local precepting authorities (parish councils), a grant is distributed as outlined in appendix 3 and described in paragraph 5.4 of the agenda report for 2018-2019.

The Cabinet received and considered the agenda report and its four appendices.

The report was presented by Mrs Hardwick.

Mr Jobson was in attendance for this item.

Mrs Hardwick said that this item related to setting the council tax base for the next financial year. It was effectively an estimate of the number of council tax dwellings in Chichester District, ie current plus estimation for new dwellings likely to enter the valuation list, which was then adjusted for the effect of discounts and exemptions (appendix 4) and for properties being in different bands. The final total was expressed as the number of Band D equivalent dwellings and then adjusted for an estimated collection rate. That figure would be used by the relevant authorities to set their council tax/precepts.

The calculations were detailed in appendix 1. Calculating the tax base as an equivalent number of Band D properties, there were 50,225 chargeable properties estimated for 2018-2019. These were then weighted to convert them to a Band D equivalent, producing 55,688 Band D equivalent properties. Net of additional charges for second and empty homes, making allowance for both eligible claimants under CDC’s Council Tax Reduction Scheme (CTRS) and estimating losses on collection, the net tax base was 52,804. This was broken down by parish as shown in Appendix 2.

Since 2013 CDC had received funds from the government in order to assist parishes which would receive less precept due to residents in their parishes receiving relief under the CTRS. From 2014-2015 CDC had continued to pay parishes out of the Revenue Support Grant (RSG) a grant to reflect that lost precept but at an ever decreasing rate.  After the 2017-2018 financial year the RSG would no longer exist. Parishes were given notice last year that the CTRS-related grant would be tapered down each year over three years and by the end of 2019-2020 will have been withdrawn altogether.  Appendix 3 detailed the taper relief which had been applied in the previous year where the grant represented a material amount for that parish (defined as being in excess of 4% of the precept). In order to avoid administering relatively small grant payments CDC was continuing to apply a lower threshold of £1,000 so any computed grant still lower than that limit was removed totally. 

Mr Jobson commented that the council tax base had experienced a healthy growth compared with the previous financial year, which was the result of housing developments in several areas in and around the city. The estimate presented to the Cabinet was a fairly accurate one based inter alia on CDC inspectors going into the community and talking with developers about their expectations and taking into account the build-out rates of previous developments.

During the discussion Mr Jobson answered members’ questions on points of detail (a) relating to the calculation of the 99% collection rate and what was factored into it; (b) with respect to students; (c) the reduction for occupiers with disabilities, which  ...  view the full minutes text for item 448