Council Tax
2008/09 Budget and Council Tax Increases - FAQ's
This is a list of frequently asked questions that are put to the Council around the time that budgets are set and Council Tax bills issued. This is not an exhaustive list, and constructive feedback from the public is always welcomed by the Council. As more feedback is received, we will add any general points and questions to this list, for the benefit of all visitors to this website, so please revisit this page at a later date.
- How much will the Council Tax go up by from April 2008?
- What do I get for my Council Tax?
- Why doesn't the Council use its reserves to keep the tax down?
- What happens to the interest earned from the Council's investments?
- What will happen if I refuse to pay the Council Tax?
- What can I do if I can't afford to pay my Council Tax?
- Where can I find out more about Hampshire County Council's budget increases?
- Where can I find out more about Hampshire Police Authority's budget increases?
- Where can I find out more about Hampshire Fire and Rescue Authority's budget increases?
- Why does Fareham BC collect the Council Tax for HCC, HPA, HFA?
- I don't use all of the services that the Council provides, so why do I have to pay for all of them?
- How much do local businesses pay towards the cost of running the Council?
- Why doesn't the Council charge more to people who actually use the services instead of taxing everyone for them?
- When will Council Tax bands be revalued?
1. How much will the Council Tax go up by from April 2008?
On the 21st February 2008, Fareham Borough Council set its band D Council Tax for the coming year at £136.53. This is an increase of 2.98% compared to the previous year. The total Council Tax bill, taking into account the amount due in respect of Hampshire County Council, Hampshire Police Authority and Hampshire Fire and Rescue Authority, for a band D property is £1,329.30.
The table below shows how the Council Tax has increased over the last 5 years:
| (All figs in the table refer to Band D properties) | 2004/05 | 2005/06 | 2006/07 | 2007/08 | 2008/09 |
| Fareham Borough Council | 123.30 | 126.27 | 128.70 | 132.57 | 136.53 |
| Other LA's | 999.81 | 1,035.27 | 1,083.69 | 1,137.06 | 1,192.77 |
| Total Band D | 1,123.11 | 1,161.54 | 1,212.39 | 1,269.63 | 1,329.30 |
| % Increase on previous year | +5.7% | +3.4% | +4.4% | +4.7% | +4.7% |
| FBC Increase | +2.5% | +2.4% | +1.9% | +3% | +2.98% |
Note 1: "Other LA's" refers to the band D charges from Hampshire County Council, Hampshire Police Authority and the Hampshire Fire and Rescue Authority (from 2008/09)
2. What do I get for my Council Tax?
The extensive range of services that the Council provides is summarised in the leaflet that is delivered with your Council Tax bill. These include sport and recreation, planning refuse collection, housing, benefits, environmental health, street cleaning, community safety, etc. A more detailed performance plan is also published in the Spring edition of the Fareham Today magazine.
3. Why doesn't the Council use its reserves to keep the tax down?
The Council's reserves are a finite resource and are held in case of unforeseen events occurring that require immediate financial input; for example flood prevention, storm damage repairs, significant income losses, etc. The Council does not believe that it would be prudent to suppress tax rises by using these essential reserves. Instead, day to day spending is kept within the bounds of the regular resource inflows available to it.
4. What happens to the interest earned from the Council's investments?
Interest earned (£1.5m planned in 2008/09) is offset against the net cost of services, which keeps the Council Tax at an affordable level.
5. What will happen if I refuse to pay the Council Tax?
You are legally obliged to pay the Council Tax. If payments are not made, the Council will issue a single reminder. If this does not prompt a payment, then the Council will issue a Court summons, which could lead to a fine or in extreme cases, imprisonment.
6. What can I do if I can't afford to pay my Council Tax?
Discounts, exemptions and benefits are offered in certain circumstances. For example, students, single occupants, and owners of second homes are all entitled to a discount. For full details about discounts and benefits available, please contact the Council Tax office on Tel: 01329 824651, or e-mail counciltax@fareham.gov.uk, or see the Council Tax pages on our website if you wish to claim Council Tax Benefits, please complete and return this form. The benefits department will then contact you to let you know what information they need to process your claim.
7. Where can I find out more about Hampshire County Council's budget increases?
For more information, contact the County Treasurers Department, The Castle, Winchester, SO23 8UB, or e-mail budget@hants.gov.uk, tel: 0800 028 0888
8. Where can I find out more about Hampshire Police Authority's budget increases?
For more information, contact the Clerk to the Police Authority, Westgate Chambers, Staple Gardens, Winchester, SO23 8AW, or e-mail office@hantspa.org, tel: 01962 871595
9. Where can I find out more about Hampshire Fire and Rescue Authority's budget increases?
For more information, contact the Hampshire Fire and Rescue Authority, Headquarters, Leigh Road, Eastleigh, SO50 9SJ, or e-mail reception@hantsfire.gov.uk, tel: 023 8064 4000
10. Why does Fareham BC collect the Council Tax for HCC, HPA, HFA?
Government legislation sets out the framework for collecting Council Tax. The way it operates in the Fareham area is that the County Council and the Police and Fire Authorities advise Fareham BC what their proportion of the Council Tax bill needs to be. Fareham brings them all together and raises a single bill to the household. Then, Fareham pay over a fixed amount to the other Authorities on a regular basis. Any difference between the amount collected and the amount paid over to each Authority is held as a surplus or deficit in a separate account (called the Collection Fund). If the Collection Fund has a surplus, then this can be used to reduce the Council Tax in the following year. Similarly, any shortfall needs to be recovered through the coming years bills.
While paying all the Council Tax to Fareham Borough Council sometimes makes it difficult to see how much of the bill relates to the services provided by the 3 other Authorities, it is the most economical and trouble-free way method of collection, it reduces the number of bills that the public receive and also the number of organisations that need to be contacted if personal circumstances change, (for example only Fareham BC need to be contacted if circumstances have changed such that you are now entitled to a Council Tax discount).
11. I don't use all of the services that the Council provides, so why do I have to pay for all of them?
Government legislation dictates the services that Council's must deliver. These are known as statutory services and the law determines that the cost of these services be met primarily through local taxation. The Council also has the power to deliver certain non-mandatory services where the need exists within the Borough. The cost of these services is more likely to be met either through taxation, through fees and charges or a combination of the two. For example, The Council is obliged to provide an environmental health service, to protect the health and safety of the local community. Certain charges are made (e.g. restaurants pay a fee to be licensed) but a large proportion of the cost is met through taxation.
12. How much do local businesses pay towards the cost of running the Council?
Business rates are collected by Fareham Borough Council on behalf of the Government and all the money collected is paid over to them. The Government then determine how much of the rates collected nationally should be repaid to each Council directly. At the moment, there is no between the rates paid by local businesses, and rates received by Fareham BC.
13. Why doesn't the Council charge more to people who actually use the services instead of taxing everyone for them?
14. When will Council Tax bands be revalued?
A revaluation of council tax bands came into effect in Wales on 1 April 2005. Work is currently underway on the revaluation of all homes in England and this will come into effect on 1 April 2007.
For further information please contact the Council Tax office on Tel: 01329 824651, or e-mail counciltax@fareham.gov.uk.
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