Decision details

Consideration was given to a report of the Director of Finance which presented to the Cabinet the Council Tax Tax Base and provisional Non-Domestic Rates (NDR) Tax Base forecast for 2019/20, which would underpin the forthcoming Council Budget and Medium Term Financial Strategy scheduled for consideration at Council on 27^th February 2019.

The report also sought delegated authority to finalise the 2019/20 Non-Domestic Rates (Business Rates) forecast in order to reflect the information contained in the Local Government Finance Settlement and up to date Non-Domestic Rates details to be submitted to Central Government by 31^st January 2019 via the annual NNDR 1 return.

Approval was sought to delegate the final decision to join in the pooling of Business Rates in 2019/20 with other Greater Manchester Districts, Cheshire East & Cheshire West and Chester Councils. Oldham had pooled Business Rates with neighbouring Authorities since 2015/16. The receipt of the Provisional Local Government Finance Settlement marked the start of a 28 day period for confirming Oldham’s membership within the 2019/20 Business Rates Pool and the timing did not align with Cabinet meetings.

The Cabinet were informed that the total number of chargeable properties included in the Council Tax Tax Base calculation in Oldham for 2019/20 was 94,662. This figure was reduced to 85,761 after allowing for discounts and exemptions and translated to the equivalent of 68,018 Band D properties. After applying adjustments for the Local Council Tax Support scheme, the additional charging to empty properties and an anticipated increase in the number of properties to be included in the valuation list over the year, the

number of Band D equivalent properties reduced to 58,446. The final Tax Base after the application of the anticipated collection rate of 97% was 56,693 which was an increase of 1,027 over the Council Tax Tax Base for 2018/19.

The 2019/20 Tax Bases for Saddleworth and Shaw and Crompton Parish Councils of 8,627 and 5,438 respectively, had been calculated using the same

methodology.

Under the current local government finance system introduced on 1 April 2013, local billing authorities were required to prepare and submit to the Ministry of Housing, Communities and Local Government (MHCLG) a locally determined and approved Business Rates forecast through the NNDR 1 return by January 31 each year. This forecast would be used to determine the 2019/20 “demand” and payment schedule for Business Rates between Oldham Council and the Greater Manchester Combined Authority. Being a participant in the Greater Manchester 100% Rates Retention Pilot Scheme meant the Council no longer paid a share of Business Rates to Central Government. Instead, Oldham currently retained 99% of the income with 1% being paid to the Greater Manchester Combined Authority for Fire and Rescue services.

The estimated rating income for 2019/20 attributable to Oldham Council was currently £53.469m. Delegation was sought to enable the Business Rates forecast to be updated to take account of the Local Government Finance Settlement and up to date Non-Domestic Rates information to be submitted to Central Government by 31 January 2019 via the annual NNDR 1 return.

The Cabinet noted that Oldham had pooled Business Rates revenues with other Greater Manchester districts and the two Cheshire Unitary Authorities since 2015/16 (Cheshire West & Chester joined the pool from 2016/17). The aim of pooling was to retain the benefits of any Business Rates growth within Greater Manchester for the benefit of the region. Approval was sought (subject to the notification of the for Provisional Local Government Finance Settlement (PLGFS)) and the decision of Cheshire East to remain within the pool for the continuation of this arrangement on the basis that no Local Authority should be worse off by pooling than it would be if it did not pool.

Delegation was sought to enable a final decision to be made subject to the PLGFS and the decision of Cheshire East Council.

Options/Alternatives

The Council had little discretion in the calculation of the number of properties incorporated into the Council Tax Tax Base given the legislative framework that was in place. However, there was some discretion over estimating the number of new properties that would be included on the Council Tax register during 2019/20. A prudent view had been taken in this regard. The main area for an alternative approach was over the level of assumed collection rate. An increase in the collection rate would boost the anticipated Council Tax income and a decrease in the rate would decrease income. The Council had chosen to maintain its 2018/19 collection rates at 97%. This decision had been taken in light of a continuing and targeted focus on Council Tax collection rates.

The NNDR1 return generated the figures upon which the Business Rates Tax Base was prepared. It was not therefore appropriate to consider an alternative approach. However, as the figures included on the NNDR1 return on 31 January 2019 may vary from the estimated level, delegation was sought to allow the opportunity to revise the Business Rates forecast and approve a revised and more accurate position for budget setting.

RESOLVED - That:

1.     The Council Tax Tax Base for 2019/20 at 56,693 Band D equivalent properties be approved.

2.     The latest estimate for 2019/20 Business Rates revenue that is attributable to Oldham Council as being £53.469m be approved.

3.     The Tax Bases for Saddleworth and Shaw and Crompton Parish Councils of 8,627 and 5,438 respectively be noted.

4.     The decision to vary the final Business Rates forecast and hence the Business Rates Tax Base, if required, be delegated to the Cabinet Member for Finance and Corporate Resources in consultation with the Deputy Chief Executive Corporate and Commercial Services and the Director of Finance.

5.     The final decision (subject to the information contained in the Provisional Local Government Finance Settlement and the decision of Cheshire East Council to remain within the pool) of the Council’s membership of the proposed Greater Manchester, Cheshire East & Cheshire West and Chester Councils Business Rates Pool for 2019/20 be delegated to the Cabinet Member for Finance and Corporate Resources in consultation with the Deputy Chief Executive Corporate and Commercial Services and the Director of Finance.