The Interim Chief Officer – Finance, Performance and Change and Section 151 Officer reported on details of the council tax base and estimated collection rate for 2021-22 for approval. 

She advised that the estimated council tax base for 2021-22 was 55,722.52, Band D equivalent properties and the estimated collection rate is 97.5%.  The net council tax base was therefore 54,329.46.  She informed Council that the estimated collection rate has been reduced from 98%, used when setting the budget for 2020-21, down to the lower figure of 97.5%, to reflect the current economic circumstances surrounding the Covid-19 pandemic,

the higher number of citizens facing economic hardship and current

collection rates.  She stated that the Council Tax Base is provided to Welsh Government and is used to calculate the amount of Revenue Support Grant in the Local Government Revenue Settlement.  For distributing RSG, collection rates are assumed to be 100%.  The amount of Council Tax due for a dwelling in Band D is calculated by dividing the annual budget requirement to be funded by taxpayers by the Council Tax Base.  She informed Council that the council tax element of the Council’s budget will be based on the net council tax base of 54,329.46.   

The Deputy Leader in commending the report to Council commented that it was prudent to set a lower collection rate as it was recognised that it may take longer to collect council tax, recognising the difficult times that prevail. 

A member of Council questioned the evidence used to adjust the collection rate and what this meant in cash terms and for doing so during the current economic climate.  The Deputy Leader informed Council that it was expected that the collection rate would be close to 98%, but it was realistic for the Council to be prudent and to adjust the collection rate.  He stated that the amount raised from collection changes daily.  The Interim Chief Officer – Finance, Performance and Change and Section 151 Officer informed Council that as at the end of October, a collection rate of 64.24% had been achieved compared to 65% as at the same time last year. She stated that it had not been possible to arrange court hearings due to the pandemic and that the Council had offered residents the opportunity during 2020/21 to re-profile Council tax payments from 10 to 12 months or to defer the usual payments made in April 2020 – January 2021 to June 2020 to March 2021. 

A member of Council asked whether the Council distinguishes those who are unable to pay council tax and those who refuse to pay and whether credit agencies were used.  The Interim Chief Officer – Finance, Performance and Change and Section 151 Officer informed Council that officers discuss payment options with every defaulter and a variety of repayment methods are offered.  The Council would only go to court where people will not pay. 

A member of Council questioned whether there was a significant amount of council tax debt in a particular Band.  The Interim Chief Officer – Finance, Performance and Change and Section 151 Officer informed Council that she would confirm whether that information is available. 

A member of Council questioned what means officers have to analyse whether people have the means to pay council tax.  The Interim Chief Officer – Finance, Performance and Change and Section 151 Officer informed Council that officers have extensive dialogue with people who default and they would have to demonstrate they do not have the means to pay.  The Interim Deputy Head of Finance informed Council that officers ask for a breakdown of income and expenditure in order to come up with the best options for repayment.        

RESOLVED:                 That Council:

·         approved the council tax base and collection rate for 2021-22 as shown in paragraph 4.1 of the report.

approved the tax bases for the town and community areas set out in Appendix A of the report.