Council tax - Frequently asked questions

What is Council Tax?

Council tax is collected from local residents as their contribution towards the costs of services provided by local authorities and councils in their area. In Thanet, services are provided by Thanet District Council, Kent County Council, Kent Fire and Rescue and the Kent Police Authority.

The table below shows how your council tax is divided up between the different authorities:

What are precepts?

When the Council collects council tax for other authorities providing services in the area (Kent County Council, Kent Fire and Rescue and the Kent Police Authority), this amount is called a “precept”.

Some areas within Thanet have Parish or Town Councils and they also ask the Council to collect their “precept”. These precepts are calculated by the Parish or town Councils and then divided up as shown below:

What are council tax property tax bandings?

Council tax has to be paid for most homes, whether rented or owned, lived in or not. The actual amount you pay depends on the band your property has been given and your personal circumstances. The table below shows the amount payable for each band in Thanet for 2010/11:

How do we calculate what council tax to charge?

The total amount of council tax we need to collect is identified as the difference between the budget we need and the money we already have to spend on our services. This is shown as follows:

What is the “council tax base”?

This is the number of properties that will be paying council tax, as if they were all paying the “average” amount at band D.

What is the revenue support grant?

This is the payment from central government towards the Council’s costs.

What is the non-domestic rate (NDR) redistribution?

Local businesses also use local services, but pay non-domestic rates rather than council tax. The non-domestic rates collected by the Council are passed straight to central government and go into a central fund. The Council then receives a payment back from this fund based on the number of people living in Thanet.

What is the business rate growth scheme?

The Local Authority Business Growth Incentives (LABGI) scheme gives local authorities a financial incentive to encourage local business growth by rewarding qualifying business growth with a non-ringfenced grant.

What are reserves?

The revenue balances of the Council are held in a general reserve to meet unanticipated expenditure arising from unexpected or emergency events. The Council also holds earmarked reserves to meet the costs of known or predicted expenditure.

How is the Council’s money spent?

The following table shows how the Council will spend its budget in 2010/11:

How are fees and charges calculated?

The Council has a fees and charges policy that establishes the corporate principles for charging for services provided by the Council. The three key principles are:

• The Council must comply with all legal requirements for setting charges and income generation. Where appropriate, this will override other factors to ensure the Council is not exposed to the risk of legal challenge.
• The charging arrangements for any service should meet the full cost of providing the service where possible and include sound arrangements for income collection. The full cost of provision includes a share of central costs and a forecast for the effects of inflation.
• The appropriateness of charges set may be dependent on the wider aims and context of the service and as a result other aspects, such as the impact on service users, must be considered rather than just financial gain when setting fees and charges.

To adhere to these principles the Council considers the following guidelines when setting fees and charges each financial year:

• Charging decisions will be taken in the context of the Council’s goals and values as set out in its Community Strategy;
• Access, affordability and elasticity of demand will be considered;
• Charges will be consistent with the Council’s policies for Value for Money, Equalities and Customer Access, e.g. consideration will be given to any disproportionate impact on vulnerable groups and those least able to pay;
• Where services are provided on a trading basis, charges will be set at the maximum level the market can bare without eroding demand such that the overall financial position of the service offering is weakened;
• Charges will be benchmarked with comparable local authorities and where they are identified as being significantly lower than in other comparable authorities, increases will be fast tracked in order to bring them in line;
• Charges will not be set at a level above other comparable authorities simply to meet efficiency targets or in response to comparatively higher costs for providing services in Thanet;
• The impact of uptake will be considered so that charges are set at a level that would confer a more favourable financial position;
• Any exemptions and concessions on standard charges will be clearly justified. They will only be provided for services where benefits to the recipient groups are clearly evidenced and are consistent with the Community Strategy.  The Council will consider the adoption of a concessions policy as part of the review of fees and charges to help address inequalities within the district.  Any approved policy will be included on the Council’s website; and

Enforcement charges will be set at a level proportionate to the nature of the offence and comparable charges in comparable authorities.

The fees and charges schedule is published on the Council’s website each year.

What is the Housing Revenue Account?

The Housing Revenue Account is used by the Council to record expenditure and income that relates to the operation of its council houses.  These include costs of maintaining the houses, expenses for running communal areas and the overheads associated with council house services.

What is capital expenditure?

This is expenditure on an asset that has a useful life of more than one year. The spend will be in excess of £10k.

How is capital expenditure financed?

The capital programme is funded from capital receipts (proceeds from the disposal of assets), capital grants, borrowing or contributions from revenue. The cost of borrowing must be met from revenue and must be prudent, affordable and sustainable.

When are the Council’s accounts published?

The Council must produce a draft set of accounts for approval by Members by 30 June each year. These accounts are then subject to audit. The accounts must be published on the Council’s website by 30 September each year.

Can residents inspect the accounts?

Any resident has the opportunity to inspect and make copies of the accounts and all books, deeds, contracts, bills, vouchers and receipts relating to them. These are available for inspection for 20 working days during the audit period. An advert is put in the local press each year advising of the inspection period. Thanet local government electors and their representatives also have the right to question the auditor on the accounts and make an objection to the accounts to the auditor. The Council’s auditor is Andy Mack, District Auditor, Audit Commission, First Floor, 16 South Park, Sevenoaks, Kent TN13 1AN.

What is included in the Council’s accounts?

Income and Expenditure Account – this reports the cost for the year of all the functions for which the authority is responsible. It also demonstrates how that cost has been financed from general government grants and council tax.

Statement of Movement on the General Fund Balance – this compares the Council’s spending against its council tax requirement for the year.

Statement of Total Recognised Gains and Losses – this statement brings together all gains and losses recognised in the financial year.

Balance Sheet – this shows the balances and reserves of the Council and its long-term indebtedness and its fixed and net current assets employed in its operations all as at 31 March.

Cash Flow Statement – this summarises the inflows and outflows of cash during the year.

Housing Revenue Account – this shows the expenditure on managing, maintaining and providing the Council’s housing stock and how this is financed by rents and other income.

Collection Fund – this shows the transactions of the Council relating to its responsibilities for collecting council tax and NNDR within the district and the way in which these have been distributed to precepting authorities.

Annual Governance Statement – this recognises, records and publishes the Council’s governance arrangements. It also reports on any significant identified weaknesses and actions planned to rectify them.

How much have we spent on advertising in 2008/09?

How much have we spent on audit fees in 2008/09?

How much have we spent on members’ allowances in 2008/09?

How much have we spent on the harbours in 2008/09?

How much has the Council received from fixed penalty littering fines in 2008/09?

The Council has received £8,626.

How much has the Council received in off-street car parking income in 2008/09?

How much has the Council received in on-street car parking income in 2008/09?

How are the car parking fines spent by the Council?

The fine income goes into a ring-fenced account to fund future parking, transport or environmental improvement related schemes.

What do we mean by ‘efficiency’?

Efficiency is defined as either achieving the same outputs for less resource (cash-releasing) or additional outputs for the same resource (non-cashable).

The Council is committed to providing excellent public services and good value for money, and are continually working to improve efficiency to keep council tax increases to a minimum whilst maintaining the services that our residents expect and deserve.

What cash efficiency savings have been achieved to date?