Report to: |
Council Tax Setting Panel |
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Date: |
22 February 2024 |
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Title: |
Council Tax 2024-2025 |
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Portfolio Area: |
Finance – Cllr J Brazil |
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Wards Affected: |
ALL |
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Urgent Decision: |
Y |
Approval and clearance obtained: |
Y |
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Author: |
Helen Darch Pauline Henstock |
Role: |
Senior Accountant Head of Finance |
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Contact: |
Helen.Darch@swdevon.gov.uk 01822 813317 pauline.henstock@swdevon.gov.uk 01803 861377 |
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Recommendations: That the Council Tax Setting Panel approves the formal council tax resolutions as detailed below: 1. That it be noted that in December 2023 the Senior Leadership Team, under delegated authority from full Council, approved the Council Tax Base for the year 2024/25
2. That the Council Tax requirement for South Hams District Council’s own purposes for 2024/25 (excluding Parish precepts) is calculated at £7,739,406 (Appendix B). 3. That the following amounts are calculated by the Council for the year 2024/25 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992 and the Localism Act 2011 (Appendix B):
4. That it be noted the County Council, the Police and Crime Commissioner and the Fire Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each of the categories of dwellings as shown below:
5. That the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the amounts of Council Tax for the year 2024/25 for each of the categories of dwellings shown at Appendix D (total of all valuation band council taxes for South Hams District Council including parishes, county, police and crime commissioner and fire authority).
6. That the Council concluded that the basic amount of Council Tax for South Hams District Council for 2024/25 is not excessive in accordance with principles approved under Section 52ZB Local Government Finance Act 1992 (see calculation at Appendix B).
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1. Council Tax Setting Panel summary
The Council Tax Setting Panel is required to approve the formal council tax resolutions in which the Council Tax will be set for each parish and town. Council considered the overall budget and ‘net council tax requirement’ at the meeting on the 15 February 2024. At that stage the level of Council Tax is effectively set for the District Council and all that remains is to formally add in the County, Police and Crime Commissioner, Fire Authority and Town and Parish precepts to arrive at the overall level of council tax. The Local Government Finance Act 1992, Section 67(3) permits authorities to delegate this function to a Council Tax Setting Panel.
2. Background
2.1 The Localism Act 2011 has made significant changes to the Local Government Finance Act 1992, and now requires the billing authority to calculate a council tax requirement for the year, not a budget requirement as previously. South Hams District Council is a billing authority.
2.2 Precepts have been notified to us from the Parish and Town Councils, Devon County Council, Devon and Cornwall Police and Crime Commissioner and Devon and Somerset Fire and Rescue Authority. These are detailed below:
(i) Town & Parish Council
The Town & Parish Council Precepts for 2024/25 are detailed in Appendix C and total £3,703,592. The increase in the average Band D Council Tax for Town and Parish Councils is 9.71% and results in an average Band D Council Tax figure of £91.38 for 2024/25.
(ii) Devon County Council
Devon County Council met on 15th February 2024 and set their precept at £69,534,286.49 adjusted by a contribution from the Collection Fund surplus of £362,000. This results in a Band D Council Tax of £1,715.67. This is an increase of £81.54 (See Section 3) of which £32.67 relates to the Adult Social Care Precept.
(iii) Devon and Cornwall Police and Crime Commissioner
The Police and Crime Panel met on 2nd February 2024 and set their precept at £11,125,194.03, adjusted by a contribution from the Collection Fund surplus of £58,000. This results in a Band D Council Tax of £274.50.
(iv) Devon and Somerset Fire and Rescue Authority
Devon & Somerset Fire & Rescue Service met on 16th February 2024 and set their precept at £4,039,925, adjusted by a contribution from the Collection Fund deficit of £21,000. This results in a Band D Council Tax of £99.68.
3. Outcomes/outputs
Council Tax Setting Panel are requested to approve the formal Council Tax Resolutions for the year 2024/2025 and the Council Tax for each of the parishes and towns within the district for the year 2024/2025.
The table below shows how an average Band D council bill is made up for South Hams District Council for 2024/25 as compared to the previous year.
Precepting Authority |
Band D 2023/24 |
Band D 2024/25 |
£ Increase |
% Increase |
Date Approved |
South Hams District Council |
£185.42
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£190.96
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£5.54 |
2.99% |
15 Feb 2024 |
Devon County Council Precept Adult Social Care Precept *
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£1,419.21
£214.92 |
£1,468.08
£247.59 |
£48.87
£32.67 |
4.99% |
15 Feb 2024
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Devon & Cornwall Police & Crime Commissioner |
£261.56 |
£274.50 |
£12.94
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4.95% |
2 Feb 2024
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Devon & Somerset Fire & Rescue |
£96.79 |
£99.68 |
£2.89 |
2.99% |
16 Feb 2024 |
Average Parishes/Towns |
£83.29
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£91.38 |
£8.09
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9.71%
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TOTAL |
£2,261.19
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£2,372.19
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£111.00
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4.91% |
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*This is an additional precept for authorities who have Adult Social Care responsibilities.
4. Options available and consideration of risk
The setting of the tax base has a significance far beyond the simple mathematics of the calculation and it forms an important component of the calculation of a robust budget and the medium-term financial plan for both billing and precepting authorities. The council tax base has been calculated in accordance with Government legislation and associated guidance notes.
5. Proposed way forward
The Council Tax Setting Panel is required by law to approve the Council Tax taking into account the requirements of our major precepting bodies.
6. Implications
Implications
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Relevant |
Details and proposed measures to address |
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Financial |
Y
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The Council Tax Setting panel is required to calculate and approve the Council Tax requirement for 2024/25.
As billing authority, the Council must determine whether the Council‘s basic amount of Council Tax for 2024/25 is excessive in accordance with principles approved under Section 52ZB Local Government Finance Act 1992. These principles are set by the Secretary of State each year.
Shire District Councils have the flexibility to set council tax increases of less than 3.0% or up to and including £5 for 2024/25, whichever is the greater.
In the case of South Hams District Council, the 2.99% increase will not trigger a council tax referendum.
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Legal/Governance
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Y |
The Council Tax Setting Panel is required by law to approve the Council Tax taking into account the requirements of our precepting bodies
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Risk |
Y |
Council Tax Requirement - failure to calculate the council tax requirement correctly would result in a budget surplus or deficit.
Council Tax Setting - the Council has a statutory requirement to approve the formal council tax resolutions. The Authority could face a legal challenge if legislation is not fully complied with and the Council Tax is calculated incorrectly.
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Comprehensive Impact Assessment Implications
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This matter is assessed as part of each specific project. |
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Equality and Diversity
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None directly arising from this report. |
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Safeguarding
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None directly arising from this report.
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Community Safety, Crime and Disorder
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None directly arising from this report. |
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Health, Safety and Wellbeing |
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None directly arising from this report.
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Other implications
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None directly arising from this report |
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Supporting Information
Appendices:
Appendix A - Parish and Town Council Tax Bases 2024/25
Appendix B - Calculations relating to recommendations
Appendix C - Parish and Town Council Precepts 2024/25
Appendix D – County, Police and Crime Commissioner, Fire Authority, District and Parish/Town Requirements 2024/25
Background Papers
The Local Government Finance Act 1992
The Local Government Act 2003
SLT Dec 2023 - Declaration of Council Tax Base for 2024/25
Council 15 Feb 2024 – Budget Proposals 2024/25
Approval and clearance of report
Process checklist |
Completed |
Portfolio Holder briefed |
Yes |
SLT Rep briefed |
Yes |
Relevant Exec Director sign off (draft) |
Yes |
Data protection issues considered |
Yes |
Accessibility checked |
Yes |