Agenda item - Determination of the Council Tax Base for 2017-2018

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

(1) That the council tax discounts to apply for the 2017-2018 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)

(2) That an Empty Home Premium of 50% be charged for the 2017-2018 financial year.

(3) That no additional locally defined classes of discount should be determined for the 2017-2018 financial year.

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

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

b. This resolution shall remain in force for the 2017-2018 financial year;

c. The calculation of the Council’s taxbase for the year 2017-2018 is approved (appendices 1 and 2);

d. The amounts calculated by the Council as its council taxbase for the year 2017-2018 for its area and each part of its area shall be those set out in appendices 1 and 2 to this report;

e. 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 to 6.5 of the agenda report.

RESOLVED

(1) That the council tax discounts to apply for the 2017-2018 financial year are:

i. Nil discount for second homes (to include those with planning restrictions – (Prescribed Classes A and B))

ii. 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)

iii. 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 2017-2018 financial year.

(3) That no additional locally defined classes of discount should be determined for the 2017-2018 financial year

(4) That 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 2017-2018 financial year;

(iii) The calculation of the Council’s taxbase for the year 2017-2018 is approved (appendices 1 and 2);

(iv) The amounts calculated by the Council as its council taxbase for the year 2017-2018 for its area and each part of its area shall be those set out in appendices 1 and 2 to the agenda 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 paras 5.4 to 5.5 to the agenda report.

The Cabinet considered the agenda report and its three appendices in the agenda supplement appendix pack (copies attached to the official minutes).

The report was introduced by Mrs Hardwick.

Mrs Christie and Mr Jobson were in attendance for this item.

Mrs Hardwick explained 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 the district (current plus estimation for new dwellings likely to enter the valuation list), which was adjusted to take into account discounts, exemptions and properties being in different bands. The final total was expressed as the number of Band D equivalent dwellings and this was adjusted for an estimated collection rate. The proposed taxbase for the 2017-2018 financial year was 51,918.4 band D equivalents. Appendix 1 (page 11 in the agenda supplement) showed a summary of the calculations. Appendix 2 (pages 12 to 13) set out the tax base for each parish within the district for 2017-2018. Para 5.4 of the agenda report addressed the allocation of grants to parishes and the arrangements put in place by CDC to provide eligible parishes with a gradually reduced level of grant until it was finally withdrawn at the end of 2019-2020. The figures in appendix 3 in the agenda supplement (pages 14 to 16) showed the proposed allocation of grant to parish councils. In order to avoid both any disproportionate impact and administering relatively small grant payments as the taper was implemented each year, CDC was applying a lower threshold of £1,000 or 4% of the parish’s precept in 2016-2017 (whichever was the lower), which meant that any computed grant lower than those limits was removed altogether. In order to illustrate how the arrangements operated she referred to Sidlesham (its grant would end in 2016-2017) and Singleton (its grant would end in 2017-2018). All parishes had been given notice of the change and had been informed that they would be advised of the outcome of this meeting at the earliest possible opportunity.

Mrs Christie and Mr Jobson did not wish to add to Mrs Hardwick’s presentation.

The Cabinet noted most local authorities had already terminated the parish grant.

In reply to a member’s question about the parishes’ response to the eventual loss of the grant, Mrs Christie said that there had been very little feedback; one parish council chairman had accepted the reality of the situation and enquired about alternative funding streams.

The Cabinet noted that there were two small amendments to the recommendations in section 3 of the agenda report. In the final line of para 3.1 (c) the words ‘(Prescribed Class D)’ should be added after ‘…major repair)’. In the final line of para 3.4 (v) ‘5.4’ and ‘5.5’ should replace ‘6.4’ and ‘6.5’ respectively.

Decision

At the conclusion of the debate the Cabinet voted on a show of hands by six votes to none against and with two abstentions (Mr Dignum and Mrs Purnell) in favour of the recommendation (as amended).