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 for the purpose of setting the Council tax base for 2023/24 was presented for the Executive’s consideration.

Councillor Ieuan Williams, Portfolio Member for Education and the Welsh Language presented the report noting that the figure calculated for the Council Tax base to be used by Welsh Government to set the Revenue Support Grant for the Council for 2023/24 is 31, 272.36. This figure excludes adjustments for premiums and discounts granted by some authorities (not Anglesey) in respect of Classes A, B, and C. The figure for the Tax Base for tax setting purposes which does include adjustments for premiums is 32,819.56.

The Director of Function (Resource)/Section 151 Officer explained the process by which the Council Tax Base is calculated both for the purpose of Welsh Government in determining the level of the Revenue Support Grant and also for local tax setting purposes and the factors involved including in the case of the latter the increase in the second homes premium from 50% to 75% which is expected to be ratified by Full Council in setting the budget in March, 2023. He referred to changes in the tax base from the previous year as regards the number of properties subject to the standard Council Tax, long-term empty properties and second homes and confirmed that increasing the second homes premium from 50% to 75% would generate an additional £800k to be reinvested in housing projects to help young people purchase a home in their locality. In response to questions about the effect of the second homes premium on the Revenue Support Grant and whether the RSG takes account of demographic profiles specifically an older population and their greater need for services the Director of Function (Resources)/Section 151 Officer clarified how the Standard Spending Assessment which is an assessment of the amount authorities in Wales need to spend on services, is worked out and the factors considered which includes a number of different datasets including population. He confirmed that the second homes premium does not affect the amount of funding the Council receives from Welsh Government and advised that a predominantly older population does not generate more funding but that a decrease in the younger population does impact the formula by which the SSA is calculated and reduces the level of funding to the Council.

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 2023/24 financial year, being 31,272.36 (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 2023/24 (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 2023/24 shall be 32,819.56 and for the parts of the area shall be as listed in the table under recommendation 3 of the report.