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 2025/26 was presented for the Executive’s consideration.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance presented the report which set out the calculations for setting the Council Tax base for 2025/26. The Council as the billing authority is required to calculate the Council Tax Base for its area, and different parts of its area, and these amounts must be notified to the precepting and levying bodies by 31 December 2024. This year the Welsh Government has requested the information for the purpose of setting the Revenue Support Grant (RSG) by 15 November 2024 and for tax setting purposes (ratified by Executive decision) by 5 January 2025. The figure calculated for the Council Tax base to be used by Welsh Government to set the Revenue Support Grant for the Council for 2025/26 is 31,445.15 which is an increase of 0.65% on the previous year. This figure excludes adjustments for premiums and discounts granted by some authorities in respect of Classes A, B, and C (this does not affect the Council in Anglesey as no such discounts are granted). The total tax base proposed for 2025/26 for tax setting purposes which does include adjustments for premiums is 33,472.17 and is an increase of 0.91% on the previous year.

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. He referred to changes in the tax base from the previous year for the standard Council Tax, empty properties, and second homes and how these affect tax revenue and funding from Welsh Government.  The increase in the number of empty properties will increase the empty property premium income as will the increase in the number of properties subject to the second homes premium although the movement in the taxbase with regard to the latter reflects a change in the number of properties in each band rather than a change in the total number of properties. While there are factors that can influence the number of empty properties and second homes, the figures raise questions about the premium in each case and whether at current levels the premium is still effective in achieving the intended outcome of bringing empty properties back into use and increasing the supply of housing in communities. The changes in the tax base will affect the Council’s starting point for the revenue budget for 2024/25.

It was resolved –

• To note the calculation of the Council Tax Base by the Director of Function (Resources)/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 2025/26 financial year, being 31,445.15 (Part E6 of Appendix A to the report).
• To approve the calculation by the Director of Function (Resources)/Section 151 Officer for the purpose of setting the Council Tax Base for the whole and parts of the area for the year 2025/26 (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 2025/26 shall be 33,472.17 and for the parts of the area listed shall be as set out in recommendation 3 of the report.