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  Calculating Council Tax

26 February 2016

The amount of council tax you pay depends on the value of your property and where you live.

Every property has been allocated to a band based on its value in April 1991. If your property was built after this date, it will have been given the national value it would have had in 1991. The band of the property is shown on your bill. If you have a query about the valuation band of your property, you need to contact the Valuation Office Agency.
 
The exact amount of your bill depends on the band your property has been allocated to and the different charges made by:
 
  • Essex County Council
  • Your District or Borough Council
  • Essex Police Authority
  • Essex Fire Authority

You may also receive a separately identifiable charge for your parish or town council.

The amounts of the Essex County Council element of your bill for 2016/17 are:

 

Band
Band
Amount (£'s)
A
Up to £40,000
753.42
B
£40,001 to £52,000
878.99
C
£52,001 to £68,000
1,004.56
D
£68,001 to £88,000
1,130.13
E
£88,001 to £120,000
1,381.27
F
£120,001 to £160,000
1,632.41
G
£160,001 to £320,000
1,883.55
H
More than £320,000
2,260.26

 

Your bill will be issued by your local district or borough council. It will show a full breakdown of your council tax charge and show how it is split between the constituent authorities. The District and Borough Council Tax Expenditure page contains more information about the amount charged by your District or Borough council.

How The Valuation Band Amount is Calculated

The first step in arriving at a charge per property is to calculate a tax base for every one of the 12 districts and boroughs within the Essex County Council area. This is calculated by the district and borough councils themselves and is achieved by multiplying the estimated number of properties within each band at the end of the financial year by the 'Band D Ratio' and adding the results together. This produces an equated tax base, i.e. as if all properties were in band D. The following table sets out a simple example of how a tax base for a District or Borough council would be calculated:

 

Table 2

 

 Band
Number of properties
Ratio to band D
Number of properties x band D ratio
A
90
6/9
60
B
90
7/9
70
C
90
8/9
80
D
90
9/9
90
E
90
11/9
110
F
90
13/9
130
G
90
15/9
150
H
90
18/9
180
Taxbase
870

 

The resultant band “D” equivalent tax bases for each District or Borough are then amalgamated to produce a single figure for Essex County Council:

 

Table 3
District / borough council
2016/17 taxbase
Basildon
58,577
Braintree
50,667
Brentwood
31,790
Castle Point
29,722
Chelmsford
63,234
Colchester
60,496
Epping Forest
52,258
Harlow
24,420
Maldon
23,456
Rochford
30,566
Tendring
44,908
Uttlesford
34,451
Total
504,545
 
 

The next step in the process is for us to calculate how much we need to raise from council tax. This will depend on how much we plan to spend on providing services to the people of Essex and how much of this will be supported by government grant and national business rates.

Of the total gross spend of £1.774 billion that we are budgeting to spend in 2016/17, we need to raise £570.201 million from council tax. This figure is divided by the tax base of 504,545 to give a band D council tax rate for Essex County Council of £1,130.13.
 
Finally, this is multiplied by the Band D Ratio for each tax band to arrive at the Essex County Council charge for each property within the band. Please refer back to Table 1 for the 2016/17 charges for each band.

2016/17 Council tax increase

The Council has now taken the tough decision to increase Council Tax on a Band D property by 3.99% to £1,130.13; this equates to an increase of under 84p per household per week. The increase includes a Social Care Precept of 2% which Central Government has introduced from 2016/17 to allow councils with adult social care responsibilities to help meet the increasing demand for these services.
 

Statement concerning adult social care funding

The Secretary of State for Communities and Local Government has 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 is the option of an adult social care authority being able to charge a “precept” of up to 2% on its council tax for the financial year beginning in 2016 without holding a referendum, to assist the authority in meeting expenditure on adult social care. Subject to the annual approval of the House of Commons, the Secretary of State intends to offer the option of charging this “precept” in relation
to each financial year up to and including the financial year 2019-20.
 
 
In relation to the financial year beginning in 2016 the Secretary of State has determined (and the House of Commons has approved) a referendum principle of 4% (comprising 2% for expenditure on adult social care and 2% for other expenditure), for adult social care authorities. These authorities may therefore set council tax up to this percentage in 2016 without holding a referendum.”