MIDDLESBROUGH COUNCIL

COUNCIL REPORT

Council Tax 2010/2011

Paul Slocombe Director of Resources

8 March 2010

PURPOSE OF THE REPORT

1.To set the Council Tax levels for 2010/2011.

SUMMARY OF RECOMMENDATIONS

2.That having taken into account the matters set out in Section 32 of the Local Government Act 1992 and in particular the items set out in paragraph 6 to the report that in respect of this Council’s expenditure the Council is recommended to approve:-

a)The basic amount of Council Tax for 2010/2011 of £1,513.78 being the average Council Tax for the whole of the Borough.

b)the basic amount of Council Tax in those areas of the Council to which no special items relate of £1,513.50.

c)the basic amount of Council Tax in areas with special items: -

Nunthorpe Parish£1,516.54

Stainton & Thornton Parish£1,523.28

d)the amounts of Council Tax for each category of dwelling in its area, in accordance with Section 30 of the Local Government Finance Act 1992 as set out in the table in paragraph 3 below.

3.That having taken into account the precepts issued by the Cleveland Fire Authority and the Cleveland Police Authority in accordance with appropriate Local Government Finance legislation, the Council hereby sets for the financial year beginning 1 April 2010, the following amounts of Council Tax for each category of dwelling in its area:-

BAND / AREAS
WITHOUT
PARISHES
£ / NUNTHORPE
£ / STAINTON & THORNTON
£
A / 1,009.00 / 1,011.03 / 1,015.52
B / 1,177.16 / 1,179.53 / 1,184.77
C / 1,345.33 / 1,348.04 / 1,354.03
D / 1,513.50 / 1,516.54 / 1,523.28
E / 1,849.83 / 1,853.56 / 1,861.79
F / 2,186.16 / 2,190.56 / 2,200.30
G / 2,522.49 / 2,527.58 / 2,538.81
H / 3,026.99 / 3,033.09 / 3,046.56

BACKGROUND AND EXTERNAL CONSULTATION

4.In order to calculate Council Tax levels for 2010/2011, the following information is required: -

  • The Budget Requirement;
  • The amounts of Revenue Support Grant (RSG) and Non-Domestic Rates (NDR) to be paid by the Government;
  • The amounts and apportionment’s of any surpluses or deficits on local tax collection for the previous year;
  • The Cleveland Police Authority precept;
  • The Cleveland Fire Authority precept
  • The Parish Council precepts;
  • The tax base.

5.The Council is required to calculate a “Basic Amount” of Council Tax, which is the Tax that would be levied on a band D property if the Budget requirement were applied to the whole of the Borough. However, in the calculation of actual Tax levels of the two parish precepts are treated as “special items”. These precepts are only funded by householders in the parishes concerned, so that the band D Tax in those areas is higher than the basic amount and the Tax in the rest of the Borough is lower.

6.The following items have been taken into account in calculating Middlesbrough’s Council tax for 2010/2011:-

(a)the budget requirement of this Authority (including parish precepts) of £133,575,000 for 2010/2011.

(b)the Council Tax Base of 39,812 for 2010/2011 approved by the Executive on 5th January 2010.

(c)the Council Tax Bases for 2010/2011 approved by Council for dwellings in the parish areas to which special items relate of: -

Nunthorpe 1,968

Stainton & Thornton 562

(d)the sums to be received in 2009/2010 in respect of revenue support grant and re-distributed non-domestic rates of £10,604,240 and £73,027,288 respectively.

(e)the estimated deficit on the Collection Fund relating to Council Tax transactions of £298,320 at 31 March 2010.

(f) the special items in respect of parish precepts for the parishes of Nunthorpe in the sum of £6,000 and Stainton & Thornton in the sum of £5,500.

7.The basic (band D) Council Tax for Middlesbrough as a whole is calculated as follows:

£ / £
Budget Requirement / 133,575,000
Less:
Revenue Support Grant
NNDR / 10,604,240
73,027,288 / 83,631,528Cr
Net requirements / 49,943,472
Council Tax Collection Fund Deficit / 298,320
(a) / 50,241,792
Tax base (b) / 39,812
Basic Council Tax (a) / (b) / £1,261.9761

8.The Basic Amount is now relevant only for statistical purposes, but must still be calculated by law. It represents the average tax paid across the Borough, including Parish precepts.

9.The calculation of the actual band D tax for parish and non-parish areas is as follows :-

a)Areas other than Nunthorpe and Stainton & Thornton:-

£ / £
Basic Amount as above: / 1,261.9761
Less
Parish Precepts / 11,500
Divided by Tax Base / 39,812
Equals / 0.2889
Band D Tax / 1,261.6872

b)Nunthorpe:-

£ / £
Add Parish precept: / 6,000
Divided by Tax Base / 1,968
Equals / 3.0488
Band D Tax / 1,264.7360

c)Stainton & Thornton:-

£ / £
Add Parish precept: / 5,500
Divided by Tax Base / 562
Equals / 9.7865
Band D Tax / 1,271.4737

10.Tax levels for the remaining bands are set in varying proportions to the band D level, as follows:-

Band / Proportion / Areas without Parishes
£ / Nunthorpe
£ / Stainton & Thornton
£
A / 6/9 / 841.1248 / 843.1573 / 847.6491
B / 7/9 / 981.3123 / 983.6836 / 988.9240
C / 8/9 / 1,121.4997 / 1,124.2098 / 1,130.1988
D / 1 / 1,261.6872 / 1,264.7360 / 1,271.4737
E / 11/9 / 1,542.0621 / 1,545.7884 / 1,554.0234
F / 13/9 / 1,822.4371 / 1,826.8409 / 1,836.5731
G / 15/9 / 2,102.8120 / 2,107.8933 / 2,119.1228
H / 18/9 / 2,523.3744 / 2,529.4720 / 2,542.9474

11.Cleveland Fire Authority has set a precept of £2,546,774 and Council Tax levels as follows: -

Band / Tax
£
A / 42.65
B / 49.75
C / 56.86
D / 63.97
E / 78.19
F / 92.40
G / 106.62
H / 127.94

12.Cleveland Police Authority has set a precept of £7,478,212 and Council Tax levels as follows: -

Band / Tax
£
A / 125.225
B / 146.096
C / 166.967
D / 187.838
E / 229.580
F / 271.322
G / 313.064
H / 375.676

13.The total tax to be levied for each band (including Middlesbrough Council, Cleveland Fire Authority, Cleveland Police Authority and Parish taxes) is therefore as follows: -

BAND / AREAS WITHOUT PARISHES
£ / NUNTHORPE
£ / STAINTON & THORNTON
£
A / 1,009.00 / 1,011.03 / 1,015.52
B / 1,177.16 / 1,179.53 / 1,184.77
C / 1,345.33 / 1,348.04 / 1,354.03
D / 1,513.50 / 1,516.54 / 1,523.28
E / 1,849.83 / 1,853.56 / 1,861.79
F / 2,186.16 / 2,190.56 / 2,200.30
G / 2,522.49 / 2,527.58 / 2,538.81
H / 3,026.99 / 3,033.09 / 3,046.56

14.The overall impact on the Council Tax is as follows:-

Middlesbrough Council / 2.5%
Cleveland Police Authority / 2.94%
Cleveland Fire Authority / 3.9%
Overall Increase / 2.6%

EQUALITY IMPACT ASSESSMENT

15.Not applicable to this report.

OPTION APPRAISAL/RISK ASSESSMENT

16.Not applicable to this report.

FINANCIAL, LEGAL AND WARD IMPLICATIONS

17.The estimated Council Tax collected for 2010/2011 will be £50,241,792 of the Council’s gross income.

RECOMMENDATIONS

18.That having taken into account the matters set out in Section 32 of the Local Government Act 1992 and in particular the items set out in paragraph 6 to the report that in respect of this Council’s expenditure the Council is recommended to approve:-

a)The basic amount of Council Tax for 2010/2011 of £1,513.78 being the average Council Tax for the whole of the Borough.

b)the basic amount of Council Tax in those areas of the Council to which no special items relate of £1,513.50.

c)the basic amount of Council Tax in areas with special items: -

Nunthorpe Parish£1,516.54

Stainton & Thornton Parish£1,523.28

d)the amounts of Council Tax for each category of dwelling in its area, in accordance with Section 30 of the Local Government Finance Act 1992 as set out in the table in paragraph 19 below.

19.That having taken into account the precepts issued by the Cleveland Fire Authority and the Cleveland Police Authority in accordance with appropriate Local Government Finance legislation, the Council hereby sets for the financial year beginning 1 April 2010, the following amounts of Council Tax for each category of dwelling in its area:-

BAND / AREA OF
MIDDLESBROUGH NOT
COVERED BY PARISH
COUNCILS
£ / NUNTHORPE PARISH COUNCIL
£ / STAINTON & THORNTON PARISH COUNCIL
£
A / 1,009.00 / 1,011.03 / 1,015.52
B / 1,177.16 / 1,179.53 / 1,184.77
C / 1,345.33 / 1,348.04 / 1,354.03
D / 1,513.50 / 1,516.54 / 1,523.28
E / 1,849.83 / 1,853.56 / 1,861.79
F / 2,186.16 / 2,190.56 / 2,200.30
G / 2,522.49 / 2,527.58 / 2,538.81
H / 3,026.99 / 3,033.09 / 3,046.56
REASONS

20.The Local Government Act 1992 requires a billing authority to set its Council Tax for each financial year.

BACKGROUND PAPERS

The following background papers were used in the preparation of this report:

(a)Revenue Budget 2010/2011 report to Executive 23 February 2010.

(b)Revenue Support Grant Settlement 2010/2011

(c)Calculation of Council Tax Base for 2010/2011, report to the Executive 5th January 2010

(d)Notifications of precepts from Stainton & Thornton Parish Council, Nunthorpe Parish Council, Cleveland Police Authority and Cleveland Fire Authority.

AUTHOR:John Shiel, Assistant Director of Finance

Tel No:(01642) 729548

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