Issue - meetings

The Cabinet gave consideration to a report of the Director of Finance which set out information on the Council Tax Tax Base for 2021/22 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 Tax Base calculation in Oldham for 2021/22 was 95,213. This figure was reduced to 86,254.25 after allowing for discounts and exemptions and translated to the equivalent of 68,469.9 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 reduced to 59,121.6. The final Tax Base after the application of the anticipated collection rate of 96.75% is 57,200 which was a decrease of 463 when compared to the Council Tax Tax Base for 2020/21 of 57,663.

The 2021/22 Tax Bases for Saddleworth and Shaw and Crompton Parish Councils of 8,699 and 5,479 respectively, had been calculated using the same methodology.

Statute required 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 January each year. This forecast would be used to determine the 2021/22 “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 (now extended by at least a further year until 31 March 2022) meant the Council no longer payed 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 2021/22 attributable to Oldham Council was currently £49.640m which was a reduction of £0.784m compared to 2020/21. Delegation was sought to enable the Business Rates forecast to be updated to take account of the 2021/22 PLGFS and up to date Non-Domestic Rates information, enabling the submission to Central Government of the annual NNDR 1 return by the statutory deadline of 31 January 2021.

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.

This report sought approval to continue these arrangements into 2021/22 (subject to the notification of the 2021/22 PLGFS).

It was highlighted to Members that the preparation of Council Tax and Business Rates taxbases was being undertaken in a period of unprecedented uncertainty and volatility. The COVID-19 pandemic has reduced the Council Tax and Business Rates income collected in 2020/21 to the extent that an income deficit is projected at the end of  ...  view the full minutes text for item 6