£5.6m more in council tax income for East Riding authority
It's during the next financial year according to officers' forecasts
East Riding Council is set to get £5.6m more in council tax income during the next financial year, according to officers’ forecasts.
East Riding Council’s Cabinet approved a rise in the council tax base, used to calculate levies, for 2022-23 of 3.1 per cent to 120,901.5 Band D homes.
Council Finance Director Julian Neilson told the Cabinet it was due to more homes eligible for levies, a drop in support claimants and stable collection rates.
Council leader Cllr Jonathan Owen said the 3.1 per cent increase was welcome and keeping council tax support schemes in place was the right thing to do.
But a report to the Cabinet warned the fragile state of the UK economy due to coronavirus and falling government funding continued to pose risks to council budgets.
It comes as councillors also separately backed hikes in charges for spare seats on home to school and college transport to £600 a year.
The council puts on free transport for eligible children but parents of those who do not qualify can buy a seat for a year if there is capacity.
Council Children, Families and Schools Director Eoin Rush told the Cabinet the increases would be tapered by holding back consumer price index (CPI) inflation linked rises.
He added current charges of £540 were among the lowest of councils’ transport schemes.
Cllr Owen said contribution hikes were an unwelcome but necessary addition to annual budgets.
A Cabinet report stated the Home to School and College programme was one of the most expensive items in the council’s budget, expected to cost around £12.7m this financial year.
The Cabinet heard keeping means tested council tax discounts of up to 75 per cent for working age households and 100 per cent for pension age ones was recommended.
A report to the Cabinet stated the number of homes eligible to pay council tax at Band D rates was forecast to rise by 1,593 by the next financial year.
The base has also risen by an estimated 1,233 Band D homes due to collection rates being 1 per cent higher than expected.
The number of homes claiming council tax discounts has also dropped by around 399, with the scheme costing around £14.7m.
But the report also stated the fragility of the UK economy meant falls in council tax collections and rises in support claims risked a lower base.
It added government support funding had also almost halved since 2013-14, dropping from £16.3m to £8.1m this financial year.
The cabinet also decided to keep trial council tax discounts for special constables despite recommendations to remove them and look at non-financial rewards for all emergency services volunteers.
Cllr Owen said it would allow East Riding officials to talk to the police to find out the best way to move forward.
Mr Neilson said: “The collection rate has held up really well, we were concerned about the impact of the pandemic on employment and people’s ability to pay.
“Our calculations assume the collection rate will return to 98 per cent, there’s always an underlying risk it will be lower but that is a fundamental part of setting the base.
“We’re recommending that the current council tax support scheme is maintained, we’ve been cautious in our approach to it due to the pandemic.
“We saw a drop in the base initially in the pandemic as council tax support claimant numbers increased.
“But there’s been a strong recovery and claimant numbers have returned to pre-pandemic levels.
“The increase in the base if approved is really good news going forward.”
Cllr Owen said he welcomed the 3.1 per cent increase in the base especially given the complex council tax payment and collection system.
The council leader said: “Council tax collection is not always an easy job because of the different ways people pay and having to chase some people up.
“We’re comfortable with continuing with the council tax support schemes, we’re doing the right thing by supporting residents with that.”
Separately, the Cabinet also backed a consultation to expand the age range at Hornsea Burton Primary School from three to 11.
Mr Rush told Cabinet members it came after the sudden closure of a private provider, leaving children in Hornsea without places.