The purpose of the report of the Strategic Director Corporate Services (Document “AO”) is to calculate both the Council’s Council Tax and Business Rates bases for 2018-19, which in turn will determine the amount of income the Council will raise locally in 2018-19.

The report is divided into two sections. Section A sets out how the Council Tax Base is calculated. It takes into account the Council’s Council Tax Reduction Scheme, exemptions and discounts and an estimate of the growth in new residential builds. Section B estimates the amount of income that will be generated from Business Rates.

Recommended -

(1)       That the number of band D equivalent properties estimated by the Council as the Council Tax Base for 2018-19 for the whole of the Bradford Metropolitan District is 140,348 as set out in Appendix A1 of Document “AO”.

(2)       The Council Tax Base for 2018-19 for each Local Council is set out in Appendix A3 of Document “AO”.

(3)       That from 1 April 2018, in calculating the Council Tax Base, care leavers up to the age of 21 are exempted from paying Council Tax. This exemption applies up to the end of the financial year in which the care leaver attains the age of 21. Further, care leavers are disregarded for the purpose of assessing the number of adult residents in a property for the calculation of Council Tax. This disregard applies up to the end of the financial year in which the care leaver attains the age of 21.

(4)       The amount estimated by the Council as the Business Rates income for 2018-19 as included on the Council’s NDR1 return (Appendix B1 to Document “AO”) is £129.6m

(5)       Of the total Business Rates income;-

50% is paid to Central Government - £64.7m

1%   is paid to the West Yorkshire Fire Authority - £1.3m

49% is retained by the Council - £63.5m

A further cost of collection allowance is paid to the Council of £0.7m.

(6)       That authority is delegated to the Strategic Director for Corporate Services (or interim Section 151 officer) in consultation with the Leader of the Council to make any necessary amendments to the calculation of the Business Rates estimate arising from the completion of the 2018-19 NDR1 form received from the Government and to include the amended figures in the 2018-19 Budget papers for Council.

(Corporate Overview & Scrutiny Committee)     

(Martin Stubbs – 01284 432065/ Andrew Crookham  - 01274 433656)

The purpose of the report of the Strategic Director Corporate Services (Document “AO”) was to calculate both the Council’s Council Tax and Business Rates bases for 2018-19, which in turn would determine the amount of income the Council would raise locally in 2018-19.

The report was divided into two sections. Section A set out how the Council Tax Base was calculated. It took into account the Council’s Council Tax Reduction Scheme, exemptions and discounts and an estimate of the growth in new residential builds. Section B estimated the amount of income that would be generated from Business Rates.

The Leader noted that Bradford had the lowest band D Council Tax rate in West Yorkshire.  She asked how the anticipated deficit of £0.4m wold be dealt with and was advised that it would be carried forward into 2018-19 and that this had been taken into account in setting the Council Tax base for 2018-19.

The Leader noted with disappointment that the government had not allocated additional funding to adult and children’s social care despite the increasing demand in both areas.  She noted that the Council was minded to increase Council Tax by a further 1% to fund social care and asked about consultation on the proposed increase.  The Strategic Director advised that as the budget consultation was already underway the proposed increase of 1% in Council Tax would be added to the information on the Council Web site in the same way as the previous year.

The Leader pointed out that a 1% increase in Council Tax raised £1.8m in Bradford yet a 1% Council Tax increase in Surrey raised £6m.  She stressed that the Council was determined to keep delivering quality services.  She thanked officers and noted that services were still excellent in many areas.

Resolved -

(1)       That the number of band D equivalent properties estimated by the Council as the Council Tax Base for 2018-19 for the whole of the Bradford Metropolitan District is 140,348 as set out in Appendix A1 of Document “AO”.

(2)       The Council Tax Base for 2018-19 for each Local Council is set out in Appendix A3 of Document “AO”.

(3)       That from 1 April 2018, in calculating the Council Tax Base, care leavers up to the age of 21 are exempted from paying Council Tax. This exemption applies up to the end of the financial year in which the care leaver attains the age of 21. Further, care leavers are disregarded for the purpose of assessing the number of adult residents in a property for the calculation of Council Tax. This disregard applies up to the end of the financial year in which the care leaver attains the age of 21.

(4)       The amount estimated by the Council as the Business Rates income for 2018-19 as included on the Council’s NDR1 return (Appendix B1 to Document “AO”) is £129.6m

(5)       Of the total Business Rates income;-

50% is paid to Central Government - £64.7m

1%   is paid to the West Yorkshire Fire Authority - £1.3m

49% is retained by the Council - £63.5m

A further cost of collection allowance is paid to the Council of £0.7m.

(6)       That authority is delegated to the Strategic Director for Corporate Services (or interim Section 151 officer) in consultation with the Leader of the Council to make any necessary amendments to the calculation of the Business Rates estimate arising from the completion of the 2018-19 NDR1 form received from the Government and to include the amended figures in the 2018-19 Budget papers for Council.

Corporate Overview & Scrutiny Committee

ACTION: Strategic Director Corporate Services