A Drop in Folkestone & Hythe Tax Base, and What That Means...

Limited likely audience for this post, but there might be someone who finds it interesting...!

The provisional 2021/22 "Tax base" calculations have been issued today from Folkestone and Hythe District Council to the area's Town and Parish Councils. The tax base calculations are one of the critical numbers that the Town and Parish Councils need to set their precept / Council tax demand for next year.

Tax Base x Band D Council Tax = Total Amount of money that Council will get from their precept.

In normal years, that tax base number tends to stay broadly stable, or go up, as more houses are built etc. This year however, it has not done that.

As the commentary sent with the figures says:

"Many of the figures have reduced from 2020/21 due to the increase in applicants for the Council Tax Reduction Scheme as a result of the impact of Covid-19."

The figures are not issued with the current year as a comparison, however, as I had the corresponding figures for this year to hand, I've crunched the numbers below. Drops on tax base in some areas and a 1.6% drop across the district overall. This is likely to reverse in future years as we come out of Covid restrictions and people can move away from needing Council Tax support, but that's not going to impact this year.

I'm making no political point here: this is not the decision of, or fault of, the adminstration of District Council. It's just a consequence of Covid, and more people rightly claiming the support they need. It will be happening in Councils across the country.

Each Town and Parish Council will have to make the decision on their budgets how to manage that, but even to keep their precept income exactly as it is this year many would have to put up their Council Tax figure...

Some hard meetings ahead.