Council Report
Report of Head of Finance Author: Simon Hewings Telephone: 01235 422499 E-mail: simon.hewings@southandvale.gov.uk Wards affected: All	REPORT NO
Cabinet member responsible: Andrew Crawford Tel: 01235 772134 E-mail: andy.crawford@whitehorsedc.gov.uk To: COUNCIL DATE: 21 February 2024

 

Council Tax 2024/25

Recommendations 1.    To note that at its meeting on 13 December 2023 the council calculated the council tax base 2024/25: (a)    for the whole council area as 58,103.8 [Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the “Act”)]; and  (b)   for dwellings in those parts of its area to which a parish precept relates as in column 1 of appendix 1. 2.    To resolve that the council tax requirement for the council’s own purposes for 2024/25 (excluding parish precepts) is £9,104,284 3.    To resolve that the following amounts be calculated for the year 2024/25 in accordance with Sections 31 to 36 of the Act: (a)    £91,031,780 being the aggregate of the amounts which the council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by parish councils. (b)    £76,405,315 being the aggregate of the amounts which the council estimates for the items set out in Section 31A(3) of the Act. (c)    £14,626,465 being the amount by which the aggregate at (3)(a) above exceeds the aggregate at (3)(b) above, calculated by the council, in accordance with Section 31A(4) of the Act as its council tax requirement for the year.  (Item R in the formula in Section 31B) of the Act). (d)    £251.73 being the amount at (3)(c) above (Item R), all divided by Item T (1(a) above), calculated by the council, in accordance with Section 31(B) of the Act, as the basic amount of its council tax for the year (including parish precepts). (e)    £5,522,181 being the aggregate amount of all special items referred to in Section 34(1) of the Act, as set out in column 2 of appendix 1. (f)     £156.69 being the amount at (3)(d) above less the result given by dividing the amount at (3)(e) above by Item T (1(a) above), calculated by the council, in accordance with Section 34(2) of the Act, as the basic amount of its council tax for the year for dwellings in those parts of its area to which no parish precept relates. 4.    To note that for the year 2024/25 Oxfordshire County Council has stated the following amounts in precepts issued to the council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings shown below: Band A £1,213.71 Band B £1,415.99 Band C £1,618.28 Band D £1,820.56 Band E £2,225.13 Band F £2,629.70 Band G £3,034.27 Band H £3,641.12   5.    To note that for the year 2024/25 the Police and Crime Commissioner for Thames Valley has stated the following amounts in precepts issued to the council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings shown below: Band A £179.52 Band B £209.44 Band C £239.36 Band D £269.28 Band E £329.12 Band F £388.96 Band G £448.80 Band H £538.56   6.    To resolve that the council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in appendix 3 as the amounts of council tax for 2024/25 for each part of its area and for each of the categories of dwellings shown in appendix 3. 7.    Determine that the council’s basic amount of council tax for 2024/25 is not excessive in accordance with principles approved under Section 52ZB Local Government Finance Act 1992.

 

 

Implications (further detail within the report)	Financial	Legal	Climate and Ecological	Equality and diversity
	Yes	Yes	No	No
Signing off officer	Simon Hewings	Vivienne Williams	Kim Hall	Abi Witting

 

Purpose of report

1.    The parish councils informed us of their 2024/25 precept requirements by 29 January 2024.  Oxfordshire County Council set its council tax for 2024/25 on 20 February 2024 and the Police and Crime Commissioner for Thames Valley (PCCTV) set his council tax requirement on 29 January 2024.  This council finalised its revenue budget at its meeting of 21 February 2024.  Following these decisions, the council has to calculate and set the council tax to include the County Council and the PCCTV as well as the district and parish taxes.

 

2.    The council tax for 2024/25 is the result of calculations in accordance with the legislation and regulations which have been issued.  The recommendations above are phrased to comply with the statutory requirements which may make them difficult to comprehend.  The sequence of calculations leading to the council tax is therefore set out in detail in this report. 

 

3.    A summary of the calculation of the council tax is given in paragraph 30 (table 7).  The district council’s element of the band D council tax for 2024/25 will be £156.69,which is an increase of £5 from 2023/24.

 

Corporate objectives

4.    Setting the council tax in accordance with the prescribed timetable supports the council in delivering its corporate objectives.

 

Background

Council tax base

5.    At its meeting on 13 December 2023 the council agreed the calculation of the tax base for its area and for each parish within the district.  These figures are set out in column 1 of appendix 1.  (recommendation (1).

 

6.    The tax base for the district has been calculated to be 58,103.8 which means that for each £1 increase of council tax a sum of £58,103.80 is expected to be raised.  Whilst a band D property taxpayer would pay the extra £1, taxpayers in other bands would pay less (bands A to C) or more (bands E to H).

 

District council expenditure

7.    At its meeting on 21 February 2024 the council set its own council tax requirement at £9,104,284.  (recommendation (2)).

 

8.    In order to comply with the legislation, district council expenditure and income met from or credited to all accounts, together with parish precepts, must be added.  The resulting figures for gross expenditure and gross income are shown in table 1 below.

 

Table 1: Gross expenditure and gross income

 

	2024/25
	£
Gross expenditure	91,031,780
Gross income	76,405,315

 

 

9.      The council is asked to approve these calculations.  (recommendations (3)(a) and (3)(b))

 

10.   The council tax requirement of the district council is therefore £14,626,465, as detailed in table 2 below.

 

Table 2: District council tax requirement

 

	2024/25
	£
District council element	9,104,284
Parish council element	5,522,181
Council tax requirement	14,626,465

 

11.   The council is asked to approve this calculation.(recommendation (3)(c).

 

Basic amount of council tax

12.   The next step is to calculate the basic amount of council tax for the district.  This is an average which includes both district and parish expenditure and is for a band D property.  The calculation is shown in table 3 below.

 

Table 3: Calculation of basic amount of council tax

 

	2024/25
	£
Council tax requirement (inc. parishes)	14,626,465
Divided by tax base	58,103.8

 

The basic amount of council tax for 2024/25 is £251.73 (2023/24 was £240.29).  This is an increase of 4.76 per cent from 2023/24.  (recommendation (3)(d).

 

Special items

13.   Having previously resolved that all the expenses of the district council are to be treated as general expenses and therefore met by all taxpayers the only special items are parish precepts.

 

14.   The parish precepts are set out in column 2 of appendix 1 and total £5,522,181 (2023/24 was £5,020,631). The increase of £501,550 from 2023/24 is 9.99 per cent.  (recommendation (3)(e).

 

Basic amount of council tax with no parish precept

15.   The parish precepts total £5,522,181 and the average tax for parish purposes is £95.04 (2021/22 was £88.60).  The basic amount of tax applying where the parish precept is nil is £156.69 (2023/24 was £151.69).  This is the council’s council tax requirement. (recommendation (3)(f)

 

16.   S52ZB of the Local Government Finance Act 1992 sets out the duty on authorities to determine whether their basic amount of council tax for a financial year is excessive.  Guidance from Communities and Local Government is that any increase of more than the higher of three per cent or £5 in the basic amount of council tax would generate the requirement under S52ZB to hold a referendum.  For 2024/25 the council is proposing to increase its basic amount of council tax by £5.  (recommendation 7).

 

Basic amount of council tax by parish

17.   Where there is a parish precept this is divided by the tax base for that parish and the result is added to the basic amount applying where there is no parish precept.  This ensures that each parish precept is met only by taxpayers in that parish area.

 

18.   The schedule of amounts for each parish is given in column 6 of appendix 1. 

 

Amount of council tax by property band

19.   The basic amount for each parish is then scaled up or down to give the tax applying to each property band.  The factors laid down in the legislation are shown in table 4 below.

 

Table 4: Council tax property bands

 

Property band	Factor
Band A	6/9
Band B	7/9
Band C	8/9
Band D	9/9
Band E	11/9
Band F	13/9
Band G	15/9
Band H	18/9

 

20.   Applying these factors gives the council tax covering district and parish expenditure for each property band.  These are given, parish by parish, in columns 3 to 10 of appendix 2. 

 

Council tax for Oxfordshire County Council

21.   At its meeting on 20 February 2024 the County Council set its council tax as shown in table 5 below.

Table 5: Council tax for Oxfordshire County Council 2024/25

 

Property band	2024/25
	Council Tax £
Band  A	£1,213.71
Band  B	£1,415.99
Band  C	£1,618.28
Band  D	£1,820.56
Band  E	£2,225.13
Band  F	£2,629.70
Band  G	£3,034.27
Band  H	£3,641.12

 

22.   The council is asked to note these figures.  The amount of money payable to the County Council by way of a precept in 2024/25 is £105,781,454 (2023/24 was £98,258,637). (recommendation (4))

Council tax for Police and Crime Commissioner for Thames Valley

23.   We were notified by the PCC for Thames Valley on 29 January 2024 that his council tax will be as set out in table 6 below.

 

Table 6: Council tax for PCC for Thames Valley 2024/25 

 

Property band	2024/25
	Council Tax £
Band  A	£179.52
Band  B	£209.44
Band  C	£239.36
Band  D	£269.28
Band  E	£329.12
Band  F	£388.96
Band  G	£448.80
Band  H	£538.56

 

24.   The council is asked to note these figures.  The amount of money payable to the PCCTV by way of a precept in 2024/25 is £15,646,191 (2023/24 was £14,522,081). (recommendation (5))

 

The council tax for 2024/25

25.   The county council’s council tax, together with the PCC for Thames Valley, and district and parish council tax figures, are shown in appendix 3.  The amounts are the aggregate council tax payable in 2024/25 for each band of property in each parish, assuming no discounts or exemptions apply.  (recommendation (6))

Legal implications

26.   The Local Government Finance Act 1992 requires the council to set the council tax by 11 March preceding the start of the financial year.  The Act sets out the calculations that must be made and this report is structured to meet those requirements.

Financial implications

27.   These are dealt with in the body of the report.

Climate and ecological impact implications

28.   There are no direct climate and ecological implications arising from this report.

Equalities implications

29.   The setting of the council tax is a legal requirement and there are no equalities implications with this process.

Risks

30.   As noted under legal implications there is a legal requirement for the council to set a budget and council tax within proscribed timelines.  If this is not achieved, then there is significant financial risk to the council in the short term of being unable to legally bill residents for council tax due and for wider intervention by Government.

Other implications

31.   n/a

 

Conclusion

32.   In summary the council tax calculation is as shown in table 7 below.

Table 7: summary council tax calculation 2024/25

	2024/25
	Amount	Band D
		council
		tax
	£	£
Oxfordshire County Council	105,781,454	1820.56
PCC for Thames Valley	15,646,191	269.28
Vale of White Horse District Council	9,104,284	156.69
Parish council	5,522,181	95.04
Total council tax (average)	136,054,110	2,341.57

 

33.   The percentage increases in council tax are shown in table 8 below.

Table 8: Percentage increases in council tax 2024/25

	2023/24	2024/25	Increase/ (decrease)
	£	£	%
Oxfordshire County Council	1,734.03	1,820.56	4.99
PCC for Thames Valley	256.28	269.28	5.07
Vale of White Horse District Council	151.69	156.69	3.30
Parish council	88.60	95.04	7.27
Overall (average)	2,230.60	2,341.57	4.97

 

Appendices:

 

1.               2024/25 parish and district council tax based on Band D

2.               2024/25 parish and district council tax by band

3.               2024/25 total council tax (OCC, PCCTV, VWHDC and parishes)

                                                                                                                                

 

Appendix 1

 

                                                                                          Appendix 1 (cont.)

 

 

 

                                                                                                                                Appendix 2

 

 

Appendix 2 (cont.)

 

 

 

 

 

 

 

 

 

 

Appendix 3

 

 

Appendix 3 (Cont.)