A slight increase in the council tax base for Blaenau Gwent is expected to enhance the council’s financial stability for the upcoming budget year. This development was discussed during a meeting of the Blaenau Gwent County Borough Council on November 24, 2023.
Council Tax Base Expansion for 2026/2027
The council tax base serves as a crucial foundation for the budget-setting process. This year, the council’s base is projected to rise to 21,210.13 from the previous year’s 21,197.98. The adjustments are part of a legally mandated annual review.
Calculating the Council Tax Base
- The council tax base calculation is based on a Band D equivalent.
- Blaenau Gwent has a higher percentage of properties in Band A or B.
- The anticipated council tax collection rate for the next year is 95.5%.
According to Council Leader Cllr Steve Thomas, this increase in the tax base is attributed to new homes and adjustments related to exemptions and discounts. He emphasized that while the base has increased, the overall budget and tax levels have not yet been finalized.
Challenges and Community Support
Deputy Council Leader Cllr Helen Cunningham raised concerns about potential challenges arising from the upcoming changes in Council Tax recovery legislation set to take effect on April 1, 2026. These changes will grant households 63 days to address overdue payments before enforcement actions commence.
- This amendment aims to ease the financial burden on families affected by the cost-of-living crisis.
- The council anticipates that the new legislation may extend the recovery timeline for outstanding Council Tax payments.
Director of Corporate Services Rhian Hayden indicated that the implications of this new legislation are still being assessed. She expressed hope that it will not significantly impact the council’s finances and reaffirmed the council’s commitment to support vulnerable residents.
Conclusion
The Blaenau Gwent County Borough Council has approved the increase in the council tax base, providing them with greater flexibility in the budget-setting process. As the council prepares for the financial challenges ahead, it aims to support residents amid evolving legislative frameworks.
