Agenda item

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

The report of the Director of Function (Resources)/Section 151 Officer for the purpose of setting the Council tax base for 2026/27 was presented for the Executive’s consideration.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance, Corporate Business and Customer Experience presented the report which set out the calculations for setting the Council Tax base for 2026/27. 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 2025. This year the Welsh Government has requested the information for the purpose of setting the Revenue Support Grant (RSG) by 14 November 2025 and for tax setting purposes (ratified by Executive decision) by 9 January 2026. The figure calculated for the Council Tax base to be used by Welsh Government to set the Revenue Support Grant for the Council for 2026/27 is 31,705.675 which is an increase of 0.80% 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 2026/27 for tax setting purposes which does include adjustments for premiums is 33,887.44 and is an increase of 1.24% 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.

The Chair asked whether the Council Tax base used for setting the Council Tax had changed significantly following the District Valuer’s decision to reclassify certain properties from business rates to Council Tax due to a change in eligibility rules for self-catering accommodation.

The Section 15 Officer confirmed that properties transferred back to Council Tax from business rates are now liable for the standard Council Tax which contributes to both the Council’s and Welsh Government’s calculations. In addition, these properties are subject to the second homes premium which feeds into the Council’s calculations alone. Successful appeals against reclassification would result in those properties being removed from the Council Tax register thereby reducing the Council Tax base next year. While Welsh Government would provide additional revenue support grant to offset this reduction, the Council would lose the extra income generated by the premium. Historically, the Council Tax base has increased year on year as new housing developments have come forward.

The Chair further highlighted  that although property data used for calculating the Council Tax base and revenue support grant is updated annually, population data which is the primary factor in determining the local government settlement has not been updated for many years. This presents particular challenges for rural councils such as Anglesey which, because settlement funding is allocated according to population size, have consistently received lower settlements.

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 2026/27 financial year, being 31,705.67 (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 2026/27 (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 2026/27 shall be 33,887.44, and for the parts of the area shall be as set out in recommendation 3 of the report.