Report by Director of Finance

The Director of Finance submitted a report regarding the Council Tax support scheme, estimated Council Tax collection rate and Council Tax base for the 2025/26 financial year.  The report explained that Section 33 of the Local Government Finance Act 1992 and the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012 required the Council, as the Billing Authority, to calculate a Council Tax Base for its area by 31 January each year. 

The Tax Base for 2025/26 was calculated for the above purposes as being 59,566.99 (band D equivalent) properties – an increase of 1.06% on the 2024/25 Tax Base of 58,944.73. The declared surplus/deficit on the Council Tax Collection Fund balance would be paid out/recoverable by the Collection Fund in full in the following financial year. The estimated balance as at 31^st March 2025 on the Council Tax Collection Fund was a projected net deficit of £0.478m. The Council’s overall share of this deficit was £0.408m.

Each year, the Government amended the Council Tax Reduction Schemes (Prescribed Requirements) (England) Regulations 2012 to ensure that pension-age Local Council Tax Support (LCTS) schemes were updated in line with changes in the wider benefits system. The annual update also provided an opportunity to ensure that the residency requirements for accessing both pension-age and working-age LCTS remained consistent with the UK’s immigration policy. These updates would be incorporated into the Council’s 2025/26 Scheme in accordance with the principles of the Council’s original Local Scheme.

The report also stated that the Welfare Reform Act 2012 and Local Government Finance Act 2012 had replaced the Council Tax Benefit scheme with a locally determined Council Tax Reduction Scheme, which was effectively a type of Council Tax discount.  The legislation required the Council to approve the scheme by the end of January preceding the start of the financial year.  The recommended Scheme for 2025/26 was unchanged from the Scheme agreed by Council for 2024/25. 

The following motion was moved by Councillor Terry and seconded by Councillor Leng and CARRIED:

Resolved –

(1)    That the existing Council Tax Reduction Scheme be retained for 2025/26;

(2)    That the Tax Base calculation for 2025/26 of 59,566.99 band D equivalent properties be approved;

(3)    That the assumed Council Tax collection rate of 98.75% for 2025/26 be noted;

(4)    That the 2025/26 Council Tax Reduction Scheme would be updated in line with the Scheme’s regulations be noted;

(5)    That the estimated balance of the Council Tax Collection Fund as at 31st March 2025 was an overall net surplus of £0.478m of which the Council’s overall share of this surplus was £0.408m be noted.