Your Guide to Council Tax
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Your guide to Council Tax 2021-2022 Important information for people who pay Council Tax. www.newcastle.gov.uk Message from the Leader of the Council This year we have faced uncertainty about the impact of Brexit alongside being plunged into a global pandemic. This, with yet another single year Local Government Finance Settlement, makes planning for the future an even greater challenge than usual. At the start of the Covid crisis, the government promised to do ‘whatever it takes’ to help us. Despite some very welcome one off grants, we were forced to increase expenditure controls during the current financial year, to address the major losses of income and significant additional costs. The impact of Covid will be felt for several years. We are faced with the difficult choice to increase Council Tax by 1.949% and use the 3% adult social care precept increase to help towards the rising cost of caring for older people and our most vulnerable residents. The adult social care precept was introduced by the Government as a way of asking local residents to provide additional funding for social care. So the austerity and cuts of the last decade are clearly far from over. Newcastle has lost £305 million since 2010, £2,270.92 per household. The government have so far refunded less than half of Councils’ £12.6 billion national Covid costs from last year, and have done nothing to fundamentally change the fact that councils all around the country will be forced to make severe cuts in 2021 to balance their books. Nevertheless, we remain confident that we can improve services, facilities and the environment. We plan to tackle inequality and push forward with our ambitious climate change initiatives. Our vision for a net zero city by 2030 is the foundation for our economic vision to Build Forward Better - protecting current jobs and creating new ones at pace. Our commitment to transform our care services through Collaborative Newcastle will make sure they are as effective and efficient as possible, with the best outcomes for anyone who uses them. However, the demand for support through these services outweighs the resources available. Campaigning for a national solution to the social care crisis will continue to form part of our lobbying to national government. Businesses remain committed to our area and are looking to invest in Newcastle and we will continue to work with them to create more and better jobs. Our commitment to maintaining Newcastle as a great city remains as great as ever. Councillor Nick Forbes Leader of the Council The Council Pound How much you will pay Your council tax bill is based on the value of your home and how many adults live there. Your home has been put into one of eight valuation bands, depending on its market value as at 1 April 1991. Our Council Tax levels for 1 April 2021 to 31 March 2022 are shown below. If you are the new Council Tax payer of a property, you could be affected by improvements made to your property by the previous owner. When ownership changes the band can be increased if your property has been extended or improved since 1993. Valuation band Your property's value at 1 April 1991 Council Tax 1 April 2021 to 31 March 2022 A Up to £40,000 £1,348.19 B £40,001 to £52,000 £1,572.90 C £52,001 to £68,000 £1,797.59 D £68,001 to £88,000 £2,022.29 E £88,001 to £120,000 £2,471.68 F £120,001 to £160,000 £2,921.09 G £160.001 to £320,000 £3,370.48 H £320,001 or more £4,044.58 How is the council tax built up Net Equivalent Band D Expenditure expenditure Council Tax Per Head £000 £ £ Total Spending by the City 234,534 3,508.99 773.49 Less: Council Tax surplus - - - Revenue Support Grant (26,784) (400.73) (88.33) Contribution from Business Rate s (87,922) (1,315.45) (289.97) (including top up) Council Requirement 119,828 1,792.81 395.19 Plus Joint Board Precepts: Police and Crime Commissioner 9,614 143.84 31.71 for Northumbria Tyne and Wear Fire and Rescue 5,724 85.64 18.88 Authority Amount to be 135,166 2,022.29 445.78 raised from Council Tax Charges per band Adult Social Care Band City Precept Police Fire Total £ £ £ £ £ A 1,061.38 133.83 95.89 57.09 1,348.19 B 1,238.28 156.13 111.88 66.61 1,572.90 C 1,415.17 178.44 127.86 76.12 1,797.59 D 1,592.07 200.74 143.84 85.64 2,022.29 E 1,945.86 245.35 175.80 104.67 2,471.68 F 2,299.66 289.96 207.77 123.70 2,921.09 G 2,653.45 334.57 239.73 142.73 3,370.48 H 3,184.14 401.48 287.68 171.28 4,044.58 Parish charges Band Brunswick Dinnington Hazlerigg N.Fenham & North Woolsington Blakelaw Gosforth £ £ £ £ £ £ A 12.51 12.09 20.32 14.12 4.29 6.42 B 14.60 14.10 23.71 16.47 5.00 7.49 C 16.68 16.12 27.09 18.83 5.72 8.56 D 18.77 18.13 30.48 21.18 6.43 9.63 E 22.94 22.16 37.25 25.89 7.86 11.77 F 27.11 26.19 44.03 30.59 9.29 13.91 G 31.28 30.22 50.80 35.30 10.72 16.05 H 37.54 36.26 60.96 42.36 12.86 19.26 What will the council spend in 2021-2022 on the provision of its services? Change between 2020-2021 2021-2022 years Gross Net On Gross Net Net Expenditure Income Expenditure Services Expenditure Income Expenditure Expenditure £000 £000 £000 £000 £000 £000 £000 Adult Social Care and Integrated Services 159,875 (79,681) 80,194 including Adult Social Care; 177,078 (89,780) 87,298 7,104 Commissioning; Inclusion and Prevention Children, Education and Skills including Children's Social Care; 248,540 (198,486) 50,054 Education Services; Early Help 239,785 (183,118) 56,667 6,613 and Family Support City Futures including Public Health; Communication Services; 27,238 (21,826) 5,412 Wards and Communities; (23,404) 4,201 (1,211) Economic Development; 27,605 Museums, Arts and Culture; Policy and Performance Operations and Regulatory Services including Architectural; Mechanical; Design and 133,633 (122,801) 10,832 Construction Services; 135,790 (126,482) 9,308 (1,524) Community Hubs; Facility Services; Environmental Services; Resilience Planning; Parking; Environmental and Public Protection Place including Major Projects; Highways, Planning and Transport; Housing and 55,440 (48,853) 6,587 Development Management; 55,861 (50,495) 5,366 (1,221) Commercial Development and Property Resources including Audit and Financial Services; 39,279 (13,677) 25,602 Procurement; Legal Services; 40,936 (14,606) 26,330 728 ICT; Human Resources; Business Management TOTAL SERVICE EXPENDITURE 664,005 (485,324) 178,681 677,055 (487,885) 189,170 10,489 PLUS: PROVISIONS 41,684 Corporate Provisions 31,368 (2,098) Contribution to/from Reserves (2,435) PLUS: LEVIES 218 Northumbria Regional Flood and Coastal Committee Levy 222 16,141 North East Combined Authority Levy 16,209 234,626 TOTAL SPENDING BY THE CITY 234,534 Adult Social Care Precept The Secretary of State made an offer to adult social care authorities. ("Adult social care authorities" are local authorities which have functions under Part 1 of the Care Act 2014, namely county councils in England, district councils for an area in England for which there is no county council, London borough councils, the Common Council of the City of London and the Council of the Isles of Scilly.) The offer was the option of an adult social care authority being able to charge an additional "precept" on its Council Tax without holding a referendum, to assist the authority in meeting its expenditure on adult social care from the financial year 2016-2017. It was originally made in respect of the financial years up to and including 2019-2020. If the Secretary of State chooses to renew this offer in respect of a particular financial year, this is subject to the approval of the House of Commons. The Government have approved the use of the Adult Social Care Precept for the year 2021-2022 For adult social care authorities, Council Tax demand notices show two percentage increases; one for the part of the overall change attributable to the adult social care precept, and one for the part attributable to general expenditure. The maximum permitted increases in 2021-2022 are 3.0% and 2.0% respectively. Newcastle City Council will increase the adult social care precept by 3.0% in 2021-2022. This will contribute £3.4 million to help reduce the funding gap in the adult social care budget. The percentage increase in the adult social care precept in 2021-2022 is based on the total Council Tax (covering both elements) in the previous year – for example, the Band A adult social care precept in 2021-2022 has been calculated as follows: £99.66 + (£1,138.85 x 3.0%) = £133.83 Environment Agency North East Region The Council Tax (Demand Notices) (England) Regulations 2011. The Environment Agency is a levying body for its Flood and Coastal Erosion Risk Management Functions under the Flood and Water Management Act 2010 and the Environment Agency (Levies) (England and Wales) Regulations 2011.