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Agenda item

Agenda item

Calculation of 2024/25 Council Tax Base and Local Business Rate Income

Meeting of Council, Wednesday 24 January 2024 7.00 pm (Item 10.)

- Report of the Cabinet Member for Finance, Insourcing and Customer Service: This report is to follow due to the Government’s recent introduction of changes to the Business Rates system, additional time is required to process information for inclusion in the report.

Members should be aware of the provisions of Section 106 of the Local Government Finance Act 1992, which applies to all elected members

Decision:

RESOLVED:

1. That in accordance with the Local Authorities (Calculation of Council Tax

Base) (England) Regulations 2012, the amount calculated by Hackney

Council as its Council Tax Base for 2024/25 shall be 77,766.9 Band D

equivalent properties adjusted for non-collection. This represents an

estimated collection rate of 93.5%.

2. That in accordance with The Non-Domestic Rating (Rates Retention)

Regulations 2013 Hackney’s non-domestic rating income for 2024/25 is

£179,559,273 subject to verification by the Academy (our Revenues

Software supplier) software release. This comprises three elements.

· £66,209,106 which is payable in agreed instalments to the Greater

London Authority

· £54,298,802 which is retained by Hackney Council and included as

part of its resources when calculating the 2024/24 Council Tax

requirement.

· £59,051,365 which is payable in agreed instalments to Central Government.

3. The proposal to levy a council tax premium equal to a 100% of the

Council tax charge in 2024/25 on any liable property which is

unoccupied and substantially unfurnished for a continuous period of

at least one year.

4. The proposal that we signal our intent prior to 1st April 2024 that we

will levy second homes premium from 1st April 2025.

5. To note that changes are proposed to the current CTRS scheme in

2024/25 and that this is covered by another report on this agenda.

Minutes:

This report was covered by section 106 of the Local Government Finance Act 1992. The Speaker advised Members of the action they were required to take if section 106 was applicable to them. Members were informed that this would be a recorded vote and only those present in the Chamber for the duration of its consideration would be eligible to vote.

The Conservative group were not present for this agenda item having previously given apologies detailed at agenda item 8.8.

10.1 Cllr Chapman, Cabinet Member for Finance, Insourcing and Customer Service introduced the report which was a key component of setting the Budget and Council Tax for the forthcoming financial year. An increased Council Tax collection rate of 93 percent was forecasted. In light of the housing crisis, owners of empty properties would be encouraged to bring them back into use. It was therefore proposed to levy a Council Tax premium equal to a 100% of the Council Tax charge in 2024/25 on any liable property. Additionally, it was proposed to signal the intent prior to 1 April 2024 to levy a second homes premium from 1 April 2025. Detailed proposals for its implementation would follow. These measures would assist with future revenue funding,

10.2 Cllr Moema and Cllr Desmsond welcomed the report. The commitment to work with the private sector housing team was highlighted as was the need to deploy some flexibility to those who genuinely wanted to pay arrears.

10.3 Cllr Binnie-Lubbock asked a question relating to whether there was any more the Council could do to provide business rates relief or reduction for small businesses. In response, Cllr Chapman advised that a small business relief was available to businesses that occupied premises with a rate of a value of less than £1500. The business rate was a national tax, which had very little local discretion. There was no specific relief that could be made outside of legislation. General support was available through the Hackney Business Network and Hackney Impact.

On a recorded vote, there being:

For: (41 Members) Mayor Woodley, Cllr Adams, Cllr Adebayo, Cllr Baffour, Cllr Binnie-Lubbock, Deputy Mayor Bramble, Cllr Chapman, Cllr Coban, Cllr Conway, Cllr Desmond, Cllr Etti, Cllr Fajana-Thomas, Cllr Garbett, Cllr Gordon, Cllr Hayhurst, Cllr Joseph, Cllr Kennedy, Cllr Laudat-Scott, Cllr Lufkin, Cllr Maxwell, Cllr McKenzie, Cllr Moema, Cllr Narcross, Deputy Mayor Nicholson, Cllr Ogundemuren, Cllr Oguzkanli, Cllr Pallis, Cllr Patrick, Cllr Potter, Cllr Premru, Cllr Race, Cllr Sadek, Cllr Selman, Cllr Sizer, Cllr Smyth, Cllr Suso-Runge, Cllr Troughton, Cllr Walker, Cllr Webb, Cllr Williams and Cllr Young.

Abstentions: 0

Against: 0

Not present in the Chamber: Cllr Krautwirt, Cllr Lisser, Cllr Papier, Cllr Rathbone, Cllr Sharer, Cllr Steinberger,

The resolution was declared CARRIED

RESOLVED:

1. In accordance with the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012, the amount calculated by Hackney Council as its Council Tax Base for 2024/25 shall be 77,766.9 Band D equivalent properties adjusted for non-collection. This represents an estimated collection rate of 93.5%.

2. In accordance with The Non-Domestic Rating (Rates Retention) Regulations 2013 Hackney’s non-domestic rating income for 2024/25 is £179,559,273 subject to verification by the Academy (our Revenues Software supplier) software release. This comprises three elements.

· £66,209,106 which is payable in agreed instalments to the Greater London Authority

· £54,298,802 which is retained by Hackney Council and included as part of its resources when calculating the 2024/24 Council Tax requirement.

· £59,051,365 which is payable in agreed instalments to Central Government

3. The proposal to levy a council tax premium equal to a 100% of the Council tax charge in 2024/25 on any liable property which is unoccupied and substantially unfurnished for a continuous period of at least one year.

4. The proposal that we signal our intent prior to 1st April 2024 that we will levy second homes premium from 1st April 2025.

5. To note that changes are proposed to the current CTRS scheme in 2024/25 and that this is covered by another report on this agenda.

Supporting documents: