Decision details

The Cabinet received a report of the Director of Finance that presented Members with the Council Tax Base which would underpin the forthcoming Council Budget and Medium-Term Financial Strategy, scheduled for consideration at the Budget Council meeting on Wednesday, 4^th March 2026.

The report also sought delegated authority to determine the 2026/27 Non-Domestic Rates (Business Rates) forecast to reflect up to date Non-Domestic Rates details to be submitted to Central Government via the annual NNDR 1 return by the statutory deadline of 31^st January 2026.

The Director of Finance’s report set out information on the Council Tax Base for 2026/27 using the most up to date valuation list and all other information and estimates available.

The total number of chargeable properties included in the Council Tax Base calculation in Oldham for 2026/27 was 99,072. This figure is reduced to 88,519.8 after allowing for discounts and exemptions and translates to the equivalent of 70,433.3 Band D properties. After applying adjustments for the Local Council Tax Support scheme offset by the additional charging for empty properties and an anticipated increase in the number of properties to be included in the valuation list over the forthcoming year, the number of Band D equivalent properties reduces to 61,950.4. The final Tax Base after the application of the anticipated collection rate of 96.75% is 59,937 which is an increase of 436 when compared to the Council Tax Base for 2025/26 of 59,501.

The 2026/27 Tax Bases for Saddleworth and Shaw and Crompton Parish Councils of 9,877 and 6,018 respectively, have been calculated using the same methodology.

It was reported as being important to highlight that the preparation of Council Tax and Business Rates Tax Bases was being undertaken in a period of unprecedented uncertainty and volatility. There were fundamental national changes to Business Rates that will take effect from 1^st April 2026. A revaluation by the Valuation Office Agency (VOA), introduction of three new multipliers, the National reset of the Business Rates system, a new Gross rates approach and the Fair Funding review are amongst the issues which make forecasting extremely challenging.

Statute requires local Billing Authorities 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 31^st January each year. This forecast would be used to determine the 2026/27 “demand” and payment schedule for Business Rates between Oldham Council and the Greater Manchester Combined Authority (GMCA). The Council remains a participant in the Greater Manchester 100% Rates Retention Scheme; this means the Council no longer pays a share of Business Rates to Central Government. Instead, Oldham currently retains 99% of the income with 1% being paid to the GMCA for Fire and Rescue services.

Options/Alternatives considered:

a.    (Preferred Option) The Council has little discretion in the calculation of the number of properties incorporated into the Council Tax Base given the legislative framework that is in place. There is some discretion in estimating the number of new properties that will be included on the Council Tax register during 2026/27 and the change to the number of claimants of Council Tax Reduction. A prudent view has been taken in this regard. The main area for an alternative approach is 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 has chosen to maintain its 2026/27 collection rate at 96.75%. This decision has been influenced by prevailing economic circumstances and current trends in collection rates.

b.    The NNDR1 return generates the figures upon which the Business Rates Tax Base was prepared. It was not therefore appropriate to consider a third alternative approach.

Resolved:

1.    That the Cabinet approves the Council Tax Base for 2026/27 at 59,937 Band D equivalent properties.

2.    The Cabinet notes the Tax Bases for Saddleworth and Shaw and Crompton Parish Councils of 9,877and 6,018 respectively.

3.    That the Cabinet delegates the decision to agree the Business Rates forecast and hence the Business Rates Tax Base, if required, to the Cabinet Member for Finance, Corporate Services and Sustainability in consultation with the Director of Finance.