Agenda item

A report that presents the Council Tax Base and provisional Non-Domestic Rates (NDR) Tax Base forecast for 2025/26 and which also seeks delegated authority to finalise the 2025/26 Non-Domestic Rates (Business Rates).

The Cabinet considered a report of the Director of Finance which presented Members details of the Council Tax Base and provisional Non-Domestic Rates (NDR) Tax Base forecast for 2025/26, which would underpin the forthcoming Council Budget and Medium-Term Financial Strategy, that is scheduled for consideration at the Budget Council meeting on 6^th March 2025.

The report also sought delegated authority to finalise the 2025/26 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 2025.

The total number of chargeable properties included in the Council Tax Base calculation in Oldham for 2025/26 was 98,912. This figure was reduced to 88,245.2 after allowing for discounts and exemptions and translated to the equivalent of 70,180.8 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 61,499.5. The final Tax Base after the application of the anticipated collection rate of 96.75% is 59,501 which was an increase of 121 when compared to the Council Tax Base for 2024/25 of 59,380.

An estimate of the 2025/26 Tax Bases for Saddleworth and Shaw and Crompton Parish Councils of 9,250 and 5,784 respectively, this would be confirmed once tax base information became available.

The Director of Finance’s report highlighted that the preparation of Council Tax and Business Rates Tax Bases was being undertaken in a period of unprecedented uncertainty and volatility. The current economic climate included uncertain prospects for economic growth, Government changes in policy in year, the decoupling of business rates multipliers and changes to relief schemes are amongst the issues which make forecasting challenging.

The Collection Fund (combined) had moved into a projected deficit position in 2024/25 resulting in additional pressure on the 2025/26 budget. This was largely the result of slower than anticipated growth in the council tax base during 2024/25.

Options/Alternatives considered:

a.    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 currently in place. However, there was some discretion in estimating the number of new properties that will be included on the Council Tax register during 2025/26 and the change to the number of claimants of Council Tax Reduction. 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 has chosen to maintain its 2025/26 collection rate at 96.75%. This decision had been influenced by prevailing economic circumstances and current trends in collection rates.

b.    The NNDR1 return generated the figures upon which the Business Rates Tax Base is prepared. It is not therefore appropriate to consider an alternative approach. However, as the figures included on the NNDR1 return on 31 January 2025 may vary from the estimated level, delegation is sought to allow the opportunity to revise the Business Rates forecast and approve a revised and more accurate position for budget setting.

The preferred option is Option b.

Resolved:

1.    That the Cabinet approves:

a.    The Council Tax Base for 2025/26 at 59,501 Band D equivalent properties.

b.    The latest estimate for 2025/26 Business Rates revenue that is attributable to Oldham Council as being £56.177m.

c.    The drawing down from the Collection Fund of £4.607m of Business Rates retention gains anticipated for 2025/26, of which the Council will utilise £3.455m (75%)

2.    That the Cabinet notes the estimate for Saddleworth and Shaw and Crompton Parish Councils Tax Base of 9,250 and 5,784 respectively.

3.    That the Cabinet delegates the decision to vary the final Business Rates forecast and hence the Business Rates Tax Base, if required, to the Cabinet Member for Value for Money and Sustainability in consultation with the Director of Finance.