Agenda item

To submit a report by the Director of Function (Resources)/Section 151 Officer.

The report of the Director of Function (Resources)/Section 151 Officer in relation to the calculation of the tax base for 2020/21 was presented for the Executive’s consideration.

The Portfolio Member for Finance reported that the total base for 2020/21 for the purpose of tax setting is 31,532.53.This compares with 31,571.46 for 2019/20 and is a decrease of 0.12%.This is as a result of a number of factors including the following –

•           Additional single person discounts and additional discounts and exemptions for severe mental health impairment. In the case of the latter if the severe mental health impairment exemption applies in a household consisting of a couple, only one person is then liable to pay Council Tax and in those circumstances the single person discount also applies.

•           A reduction in the region of 130 in the number of long-term empty dwellings subject to the premium which is a reflection of the effectiveness of the premium in meeting its objective of bringing empty homes back into use. There are approximately 40 new long term empty properties but these are not currently subject to the premium.

•           The transfer of domestic properties/second homes from the Council Tax base to business rates use where it can be shown that the properties are commercially let for 70 days in a 12 month period. Although this is not especially a problem in Anglesey compared to some other authorities in North Wales, it is felt that Welsh Government should consider taking steps to close the legal loophole that makes this possible.

The Director of Function (Resources)/Section 151 Officer highlighted that the figures for the Council Tax base for 2020/21 have been forwarded to Welsh Government where they will be used in calculating the Revenue Support Grant for 2020/21 (excluding adjustments for premiums and for 2020/21 onwards, the discounts granted by some authorities – but not Anglesey - in relation to classes of dwellings A, B and C) and will be reflected in the initial provisional settlement meaning there is likely to be less variance between the initial and final settlements.

The Executive noted the information and queried whether in cases where properties have transferred to business rates use there are arrangements for monitoring and verifying their continued compliance with the qualifying criteria for business rates use.

The Director of Function (Resources)/Section 151 Officer clarified that this is a matter for the Valuation Office Agency; the question of the Agency’s capacity to carry out ongoing monitoring to ensure compliance has been raised previously. Gwynedd Council has been leading on putting the case to Welsh Government for increasing resources for the Valuation Office Agency to enable it to undertake this function; Anglesey is in contact with Gwynedd Council on the progress of those discussions.

It was resolved –

•           To note the calculation of the Council Tax Base by the Director of Function (Resources) and Section 151 Officer – this will be used by the Welsh Government in the calculation of the Revenue Support Grant for the Isle of Anglesey County Council for the 2020/21 financial year, being 30,927.17 (Part E6 of Appendix A to the report).

•           To approve the calculation by the Director of Function (Resources) and Section 151 Officer for the purpose of setting the Council Tax Base for the whole and parts of the area for the year 2020/21 (Part E5 of Appendix A to the report)

•           That, in accordance with the Local Government Finance Act 1992 and the Local Authorities (Calculation of Council Tax Base) (Wales) Regulations 1995 (SI19956/2561) as amended by SI1999/2935 and the Local Authorities (Calculation of Council Tax Base) and Council Tax (Prescribed Classes of Dwellings) (Wales) (Amendment) Regulations 2004, and the Local Authorities (Calculation of Council Tax Base) (Wales) (Amendment) Regulations 2016, the amounts calculated by the Isle of Anglesey County Council as its tax base for the year 2020/21 shall be 31,532.53 and for the parts of the area listed in table 3 of the report  shall be as set out therein.