Agenda item

The Commission considered and discussed a report providing an update on the Council Tax Base report due to be submitted to the Cabinet on 6 December and to the Full Council on 10 January.

Summary of main points raised:

1. Cllr Rippington queried whether any data was available on the impact of the previous 2008-09 economic recession as it might be useful to have a comparator in relation to the year ahead.  In discussion, it was noted that whilst any available data could be examined, care would need to be taken in drawing comparisons between the economic situation of 2008-09 and the present day. It was also important to bear in mind that Bristol’s Council Tax Reduction Scheme (established in 2013) had not been in place during the previous recession.

2. A number of questions and queries were raised in relation to student exemptions, noting that students were entitled to an exemption from paying council tax if everyone occupying a property was a full-time student (alternatively, a discount may apply if some of the people occupying a property were full time students).  It was agreed that a separate note should be prepared and circulated setting out the full detail of how council tax and related student exemptions are applied, in terms of both student halls of residence and student occupied properties. 

3. It was noted that a wider consequence of the provision of more new student accommodation development in the city was (due to exemption) less council tax being applicable/collectable than would have been the case if sites were developed for alternative residential use.

4. Further to the discussion that had taken place at the detailed budget scrutiny sessions held on 22 and 23 November, Cllr Bradshaw stressed that developing a more targeted approach in relation to the Council Tax Reduction Scheme would need to be the subject of very detailed and careful consideration.

5. In response to an issue raised by Cllr Fodor about the likelihood of council tax arrears increasing in light of the economic situation / cost of living crisis, officers confirmed that the principles of ethical debt collection were being applied, as referenced more fully in the report providing an update on the Council’s debt and arrears position (agenda item 11).

6. In response to a question from Cllr Dyer (noting that council tax bands were based on their value in April 1991), it was confirmed that there was a procedure through which residents could apply for their property banding to be reassessed.

7. Cllr Bradshaw noted that the 2023/24 in-year council tax collection rate target was set at 94%. Given the fact that the current year’s collection rate was 92.67% and the ongoing impact of the national economic situation and cost of living crisis, he queried whether a target of 94% for the next financial year was realistic.  In response, officers advised that setting this target was a difficult ‘call’ taking account of a number of factors; it was acknowledged that the target was challenging but it had also been set in the context of Bristol’s core city comparators’ targets and reflecting that, generally, collection rates were now nearing pre-pandemic levels.  Cllr Hopkins commented that it was important to recognise that the cost of living crisis would most impact the poorest people in the city.

The Commission RESOLVED:

- That a note would be provided after the meeting about how council tax applies to student halls of residence and student occupied properties.

- To note the report and the above information.