Knowsley Council tonight received an update on Council Tax collections and forecasts.
Over the last decade, the cuts in Government funding to the Council has meant that the funding the Council generates from Council Tax and Business Rates has become increasingly important in delivering economic and housing growth. This approach has helped to maintain the delivery of key public services.
Housing growth has helped Knowsley to increase its Council Tax Base by 27% overall since 2013/14 – providing the Council with an extra £16.6m in permanent funding.
The Council Tax Base is an estimate of the number of residential properties in the Borough which are subject to Council Tax. It allows the level of Council Tax receipts to be estimated as part of the Council’s annual budget setting process. The Council Tax Base is defined as the number of Band D equivalent properties within the Borough.
The proposed Council Tax Base for 2025/26 will rise by 1.75% compared to 2024/25 – an increase of 681 Band D properties. The new Council Tax Base will generate extra Council Tax receipts of approximately £1.3m per year for the Council from 2025/26.
In line with national trends, growth in Knowsley’s Council Tax Base has slowed somewhat in recent years due mainly to reductions in the pace of house building caused by national economic challenges, and an increase in Council Tax discounts due to the cost of living pressures experienced by Knowsley residents.
In addition, legislation now allows the Council to charge a premium of 100% on second homes. The aim of the premium is not to raise additional income for the Council. Instead, and in view of the high level of demand for housing across the Borough, the aim is to disincentivise second home ownership as this inevitably results in such properties remaining empty for significant periods of time. Following consultation in 2024, one financial year’s notice needs to be given prior to introducing such a charge and so it will be introduced from 1 April 2025.
A full meeting of the Council is scheduled for 5 March 2025 to set the Council Tax for 2025/26.
Cllr Jayne Lonergan, Cabinet Member for Resources, said “It’s really important that we do all that we can to boost our budget – Government funding alone nowhere near funds the support and services for our communities.
“That’s why we have ambitious plans to grow our borough and attract more residents, businesses, visitors and investors into Knowsley.
“We have a successful track record of delivering on our plans, which include housebuilding and ensuring there is a sufficient choice in terms of location, quality and price as well as developing our town centres.”