Council Tax services explained

Council tax Your services explained

www.manchester.gov.uk

You’ll find a wealth of information on our easy-to-use website, plus handy links to other helpful information sites too.

0161 234 5002 one click, one callyour council tax made simple

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A message from Sir Richard Leese, the Council’s Leader

Your Council is having to make cuts of a scale that is unprecedented.

We have always known that, as a result of the recession and the national budget deficit, we would have to reduce our budget. We had planned for this and were confident that if we had had no more than the average cut in the Government grant, we would have largely protected front-line services. Now, with one of the largest cuts in Government grant facing any council in the country, we have to save £109million in 2011/2012 rising to £170million, 25 per cent of our budget, the following year. The scale and speed of the savings required mean that, sadly, they cannot be achieved through efficiencies alone.

We have had to make some extremely difficult decisions about spending priorities. We have done all we can to target funding where it will make the most difference to residents, and to promote the economic growth that will bring jobs to Manchester.

Our priorities over the coming year are to:

— continue to promote economic growth, job creation, and the ability of Manchester residents to access those jobs

— continue to promote independence and reduce dependency, including through early intervention and preventative action

— continue to safeguard those in greatest need

— maintain successful neighbourhoods and avoid a return to a declining population and the problems that brings

— maintain a balance to support opportunities and target the areas of greatest need

— take decisions and implement them quickly to minimise the scale of the cuts.

These must all be undertaken in a way that is driven by the Pride, People, Place values of the Council and which increases fairness and promotes environmental sustainability.

I am confident our city has the resilience to come through this difficult economic climate.

The year ahead will be a tough one for many people in the city, and the Council wants to work with you in getting through these hard times. That’s why, for the second year running, we have decided to freeze council tax. Some good news at least!

manchester.gov.uk 0161 234 5002 1Where does the money come from?

The Council’s revenue budget for 2011/12 is almost £1.5billion, after taking account of planned use of £34million of its reserves, £20million of which is being used to fund specific key capital projects. The money to pay for this is received from three main sources:

Grants from the Government: The Government provides a large proportion of the money the Council spends in the form of grants. Some are given to us for specific purposes and some are allocated to us to be used as we determine to provide our services in line with local priorities. The first settlement under the new Coalition Government has seen a major shift away from specific grants. Some will be included in the General Grant, a small number will be service specific grants, while others will cease altogether. While this provides the Council with additional flexibility over how the grant resources received are utilised, it has been accompanied by one of the biggest reductions in overall grants seen since the mid-1980s. For 2011/12 and 2012/13 the Government is providing a Transition Grant, which limits the total loss of grants received between years so that no authority receives a funding reduction in 2011/12 or 2012/13 of more than 8.8 per cent compared to the previous year. Manchester will receive a Transition Grant of £13million in 2011/12, without which our grant would have been reduced by 10.9 per cent. Manchester will receive no Transition Grant in 2012/13.

The resources we receive from the Government include Manchester’s share of the rates collected from businesses (the National Non-Domestic Rate). Our share of the rates collected is based on an assessment by the Government of Manchester’s overall resource need and not based on the amounts collected from businesses in Manchester.

In addition to the grants we will receive directly from the Government from 2011/12, we will also receive a transfer of resources from the NHS to help fund care services.

Grants and Contributions from other agencies: The Council receives grants and contributions from other organisations, such as the NHS, Sport England and the National Lottery, towards the costs of providing or developing some of our services.

Council Charges:

— Council tax – this is paid by residents in Manchester and although it is the only direct tax the Council can levy its citizens, it makes up only nine per cent of total Council income. The Government has provided an additional grant for all councils that freeze their council tax for 2011/12 at the 2010/11 rate. Manchester has frozen its council tax in 2011/12 to take advantage of this additional grant.

— Fees and charges – the Council makes direct charges for some of the services it provides.

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There are other smaller sources of income, and the Council can use reserves that have been built up in previous years to support one- off costs of services.

The pie chart below shows the breakdown of these income sources for 2011/12.

* Government grants include Transition Grant of £13.073million and Council Tax Freeze Grant of £3.489million

How the budget compares with last yearManchester’s Net budget requirement is made up of The General Government Grant we receive (including our share of the NNDR pool) plus the Council tax receipts we receive. The Council will receive £43.2million less General Grant in 2011/12 after taking in to account changes in the way the grant is calculated. Growth in Manchester’s Tax Base and improvements in collection of arrears means that we will receive some £1.7million more in 2011/12 than in 2010/11 while still holding a Council Tax freeze. Manchester’s Net Budget Requirement has therefore gone down by £41.5million from £538.4million in 2010/11 (adjusted) to £496.9million in 2011/12.

The Council has had to identify savings to meet these reduced resources however other factors have also required the Council to identify a total of almost £109million next year. These are identified in the table below.

£m

Reduction to General Grant 43.2

Reductions to other Government Grants†

18.6

Increases in costs due to Government actions

3.5

Other unavoidable cost pressures 19.5

Growth in services (demand) 19.5

Increased cost of funding capital 7.2

Increased use of reserves to support budget

(0.7)

Increased Dividends received (0.3)

Increased CT receipts (1.7)

Total Savings required 108.8

1 Revenue Support Grant £84m2 NNDR £270m3 Council Tax £143m4 Fees and Charges £123m5 Government Grants* £120m6 Dedicated Schools Grant £349m7 Benefits Reimbursement £314m8 Transfer Funding from NHS £7m9 Other Grants and Contributions £51m10 Use of reserves £34mTotal Income £1,495m

12

3

45

6

78910

† This is net of Transition grant (£13.1million), Council Tax Freeze Grant (£3.5million) and additional resources from the NHS (£7.4million)

Your council tax

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Where does the money go?Most of the money received is spent on the services the Council provides. However, some is used to repay money borrowed in previous years to fund capital projects and some is paid out by way of levies to other organisations, eg. the Greater Manchester

Integrated Transport Authority. An amount is also put aside each year to meet any unforeseen costs that may arise during the course of the year. The table below compares the amounts spent on services this year and last:

The 2010/11 figures in the table above have been adjusted to take account of how the Government support we receive has changed to make them more comparable with the 2011/12 figures.

This year 2011/12 Last year 2010/11 (Adjusted)Gross expenditure

Net expenditure

Gross expenditure

Net expenditure

Services provided:Adult Services (includes MAES)

£m231.0

£m171.0

£m234.6

£m176.5

Children’s Services (includes Education)

660.8 282.6 672.6 293.5

Environmental Services 47.3 30.7 53.8 37.1Cultural Services 31.1 24.3 33.5 26.5Recreational Services 22.9 17.7 25.5 20.2Planning and Development Services

5.6 2.3 6.4 3.1

Highways and Transport Services 20.9 15.9 20.8 15.8Housing (excluding HRA) 16.5 15.1 15.3 13.9Regeneration 18.3 16.3 27.6 24.4Trading 36.9 5.5 42.4 10.9Other central services (includes central contingency)

430.9 58.0 481.2 61.0

Contributions to other organisations

58.7 58.7 56.2 56.2

Revenue contribution to capital 21.3 21.3 47.1 47.1

Total service expenditure 1,602.2 719.4 1717.0 786.2

Other income: use of reserves:

Asset Management Revenue Account

(106.7) (106.7) (109.9) (109.9)

Government grants (within net budgets)

– (76.0) – (66.5)

Other income – (5.8) – (5.5)

Use of reserves – (34.0) – (65.9)

Budget requirement 1,495.5 496.9 1,560.0 538.4

continued… Where does the money come from?

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Levies paid by Manchester City CouncilThe table below shows the various levies paid to other organisations:

This year 2011/12 Last year 2010/11

Levies include: GM Integrated Transport Authority

£m

34.6

£m

31.4

GM Waste Disposal Authority 23.8 21.1

Environment Agency 0.2 0.2

Magistrates, Probation and Port Health Authority

0.1 0.1

Total 58.7 52.8

Further details of some of these levies can be found in other leaflets included with your council tax bill.

manchester.gov.uk 0161 234 5002 2

By paying your council tax regularly you help to provide services for your local community.

Direct DebitThe simplest, safest and quickest way to pay your council tax is by Direct Debit. You will also have a money-back guarantee from your bank if there is an error, advance notice if the date or amount changes, and the right to cancel at any time. You can spread your payments over 10 or 12 months, and can choose to pay on the 7th, 15th, 21st or 28th of each month.

If you already pay by Direct Debit, you don’t need to do anything. We will continue to collect the monthly payments shown on your bill from your bank or building society. If you want to pay by Direct Debit call 0161 234 5002.

Pay by debit or credit card Online – go to www.manchester.gov.uk/counciltax

By phone – ring our 24-hour payment line on 0161 234 5006. You will need your council tax reference number.

In person – Customer Service Centre at Number One First Street, Manchester M15 4FN (Monday to Friday, 8am–5pm). (For satellite navigation use M1 5DE)

Pay by cashPay by cash anywhere you see the Paypoint or Payzone sign using your payment card. To order a payment card, phone 0161 234 5002.

You cannot use your payment card at your bank or building society.

Pay by chequeCheques should be made payable to Manchester City Council. Write your full name, address and account reference number on the back of your cheque. We do not send receipts for cheque payments. Send your cheque to Manchester City Council, Council Tax Service, PO Box 147, Manchester M15 5TU.

You can check the details of your council tax and business rates accounts online using our Account and Claim Tracker. You must register online first to use this free service. You can also check details of your Housing Benefit and Council Tax Benefit claims online once you have received your award letter.

Visit www.manchester.gov.uk/tracker for more information and to register.

How to pay your council tax

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Receiving your council tax bill by emailWe now offer you the option to receive your council tax bills by email rather than through the post. This helps the Council reduce its printing and postage costs as well as helping the environment.

If you want to receive your bills by email, go to www.manchester.gov.uk/counciltaxebilling and complete the simple paperless billing registration form.

Please note that if you sign up to receive this service, then all your future bills will be sent to you by email.

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Each home – house, bungalow, flat, maisonette, mobile home or houseboat – whether owned or rented, is placed in one of eight bands according to its value at 1 April 1991. This is decided by the Government’s Valuation Office Agency (VOA).

Your council tax bill shows which band your home is in.

Band Value at 1 April 1991

Council tax 2011/12*

A Up to £40,000 £884.66

B £40,001 – £52,000 £1,032.11

C £52,001 – £68,000 £1,179.54

D £68,001 – £88,000 £1,326.99

E £88,001 – £120,000 £1,621.87

F £120,001 – £160,000 £1,916.77

G £160,001 – £320,000 £2,211.65

H £320,001 and over £2,653.98

*These include Police and Fire.

Appealing against your council tax valuation bandYou can appeal to have your home put into a lower valuation band, but only in the following situations:

— If part of your home has been demolished. — The property has been converted

into flats. — There have been physical changes

in the local area that affect the value.

You can usually only appeal within six months of:

— a change in the band of your property; or — becoming a new council tax payer for

the property.

You must pay the council tax while you are waiting for a decision on your appeal. If your appeal is successful, we will pay back any overpayments.

If you want more information or to appeal, write to: The Valuation Office Agency, The Listings Officer, 17th Floor, Portland Tower, Portland Street, Manchester M1 3LD Phone: 03000 503 600 Website: www.voa.gov.uk

Your council tax explained

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The full council tax bill applies when there are two or more adults living in a property. If only one adult lives in a property, we will reduce the council tax bill by 25 per cent. This is called a single person discount.

Council tax discountIf a property is no-one’s main home, we will reduce the bill by 50 per cent. This can apply to empty properties and second homes.

Certain people are not counted when we decide on the number of adults living in a property. For example, if two adults live in a property but one is not counted, we will reduce the bill by 25 per cent. The following are examples of people who are not counted:

— Full-time students and some student nurses

— Apprentices and youth training trainees — Patients resident in hospital — People who are being looked after in

care homes — People who are severely mentally

impaired — People staying in certain hostels or night

shelters — 18 and 19-year-olds who are at school

or who have just left school

— Care workers working for low pay (usually for charities)

— People caring for someone who is not a partner or child under 18

— Members of visiting forces and certain international institutions

— Members of religious communities — People in prison (except for those in

prison for non-payment of council tax or a fine).

Reductions for disabled peopleYou may be entitled to a reduction in your council tax if you have a room, an extra bathroom or kitchen, or extra space in your home that is specially required by you or another person in your home because of a disability.

If you think you may be entitled to a discount or reduction, please contact the Council Tax Service.

You can find more information about claiming a discount or reduction on our website www.manchester.gov.uk/counciltax

If your bill shows we have given you a discount, you must tell us of any change of circumstances that affects your discount within 21 days. If you do not, you may have to pay a penalty of £70.

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Council Tax Benefit To find out if you could be entitled to Council Tax Benefit, see section 4.

Exempt propertiesSome properties are exempt from council tax. This means there is no bill to pay for the period of the exemption.

Properties that are unoccupied and substantially unfurnished are exempt for up to six months. These include newly built properties from the date they are completed if they remain unoccupied and unfurnished.

Unoccupied properties where structural alterations or major repairs are required or have taken place are exempt for up to 12 months.

Properties are exempt if they are left unoccupied by:

— People in prison — Long-stay hospital patients — People receiving or providing care — The owner because they are

away studying — Someone who has died and no grant

of probate or letters of administration have been made (the property can remain exempt for up to six months after the grant has been made).

Unoccupied properties that are owned and last used by a registered charity are exempt for up to six months.

Properties that are unoccupied because the law says they must not be occupied are exempt.

Unoccupied properties that are kept for ministers of religion are also exempt.

continued… Your council tax explained

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Properties that are left unoccupied are exempt if:

— they have been repossessed by the mortgagee; or

— they are the responsibility of a trustee in a bankruptcy.

A caravan pitch or a houseboat mooring not occupied by a caravan or boat is exempt.

A property that forms part of another property, such as an annexe that cannot be let separately, is exempt if it is unoccupied. It is also exempt if it is occupied by an elderly or dependent relative.

Certain types of properties are exempt even though they are occupied:

— student halls of residence — armed forces’ accommodation — visiting forces’ accommodation.

Some properties are exempt because they are occupied only by people who are:

— students — under 18 — severely mentally impaired — diplomats.

If you want more information about exemptions or think you may be entitled to an exemption, contact the Council Tax Service or visit our website www.manchester.gov.uk/counciltax

Appealing against your council tax billYou can appeal to the Council Tax Service if you think you are not responsible for paying the bill, for example because you are not the resident or owner, or because the property is exempt. Contact the Council Tax Service for more advice.

Park WardenBoggart Hole Clough

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You can get money off your council tax bill if you or your partner have to pay council tax and you are on a low income. This is called Council Tax Benefit.

The amount of help depends on your income, the size of your family and the amount of council tax you have to pay. You can’t get benefit based on your income if you (together with your partner if you have one) have savings of more than £16,000 (unless you get Pension Credit (Guarantee Credit)). However, you may be able to claim Second Adult Rebate (see next page).

The table below shows whether you can get benefit based on your income if you live in a Band A property. The best way to find out is to make a claim – check online or contact the Benefits Service for a claim form.

Are you entitled to Council Tax Benefit?

4

If you live in a Band A property and you are:

In work? Claim if your weekly income is less than

Not in work? Claim if your weekly income is less than

Single aged 18–24 £122.50 £117.50

Single aged 25–59 £136.50 £131.50

Single aged 60–64 £206.50 £201.00

Single aged 65 or over £227.00 £222.00

A single parent: two children under 11 £298.50 £273.50

A couple aged under 60 £201.00 £191.00

A couple aged 60–64 £305.00 £295.00

A couple aged 65 or over £332.00 £322.00

A couple: one child under 11 £281.00 £271.00

A couple: one child under 11, two 11–15 £405.50 £395.50

If your home is in Band A and you get a reduction in your bill for a disabled person (see ‘Reductions for disabled people’ in section 3), take away these amounts from the top income limits in the table above. Single people living alone and single parents – take away £10.61; couples – take away £14.14.

manchester.gov.uk 0161 234 5002

If your home is in Band B to H, you can have a higher income and still get benefit. Use the following table to see how much to add to the amounts in the table for Band A.

Amounts to add to top income for higher bands:

Band

Single people living on their own and single parents add

Couples add

B £10.61 £14.14C £21.21 £28.28D £31.82 £42.43E £53.03 £70.71F £74.24 £98.99G £95.46 £127.28H £127.28 £169.70

Second Adult Rebate If you do not qualify for Council Tax Benefit based on your income, you may still be able to get help with your council tax if you are the only person liable to pay it and you have another adult (or adults) living in your home who is not your partner, joint tenant or joint owner and is on a low income. We work out Second Adult Rebate based on the income of the other adults. Your income and savings do not affect this benefit.

To claim Second Adult Rebate contact the Benefits Service for a claim form (see contact details in section 5).

Claiming Council Tax Benefit onlineWe also have an ‘online benefit claim calculator’ that provides a quick and simple way to check if you can get Housing Benefit and/or Council Tax Benefit.

The calculator will tell you the amount of benefit you may be entitled to based on the details you have provided; you can then continue to make an online claim for Housing Benefit and/or Council Tax Benefit.

To make an online claim go to www.manchester.gov.uk/benefits and click on ‘Online benefit claim and calculator’.

Every penny counts towards Manchester services. Benefit cheats steal millions of pounds each year – money that could be spent on other services. The Council is committed to detecting and preventing fraud and abuse. We will investigate suspected fraudulent claims for Housing Benefit and Council Tax Benefit, and those dishonestly claiming council tax discounts or exemptions. Where appropriate, offenders will be prosecuted.

If you suspect someone is committing benefit fraud, you can report them in confidence:

Online: www.manchester.gov.uk/benefitfraud

Phone: ring the free and confidential Fraud Hotline on 0800 783 9668.

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For advice about council tax contact the Council Tax Service at: Email: [email protected] Email for landlords only: [email protected]

Website: www.manchester.gov.uk/counciltax

Phone: 0161 234 5002 Textphone: 0161 953 8301 (for callers with hearing difficulties who have textphones)

Fax: 0161 953 8226

Post: Council Tax Service, PO Box 147, Manchester M15 5TU

For advice about Council Tax Benefit or Second Adult Rebate or to claim, contact the Benefits Service at: Email: [email protected]

Website: www.manchester.gov.uk/benefits

Phone: 0161 234 5003 Textphone: 0161 953 8301 (for callers with hearing difficulties who have textphones)

Fax: 0161 455 1130

Post: Benefits Service, PO Box 3, Manchester M15 5BA

Make an appointment to see usPhone 0161 234 5003 between 8.45am and 5pm to make an appointment to see an adviser about benefits or council tax at the Customer Service Centre at Number One First Street in the city centre. Number One First Street is at the junction of Whitworth Street West and Albion Street (for satellite navigation systems use M1 5DE).

The Customer Service Centre is open Monday to Friday between 8am and 5pm. You can also hand in filled-in claim forms there without an appointment and staff can check any supporting evidence you need to provide.

We also hold council tax and benefits enquiry sessions at some libraries.You must make an appointment. Phone 0161 234 5003 Monday to Friday between 8.45am and 5pm for an appointment.

Note: Remember to put your account reference or benefits number on any letter, fax or email you send. Please include a daytime contact telephone number so we can ring you.

In order to improve our service we record phone calls to help with staff training and to check what customers ask us.

Where to get more advice

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We are committed to improving our services for you. To do this, we need to collect and use information about individuals who we provide services for, and others we have contact with.

We will use the information we have about you to work out and collect council tax. We will share the information within the Council or with external third parties where it is necessary and the law allows it. This is to ensure that we improve our service delivery and that we meet our key aims and obligations. We will also use the information to prepare statistics and for research.

Our pledge to you — We will process your personal data in

accordance with the Data Protection Act 1998 and other relevant legislation.

— We will only share your personal data if it is necessary and the law allows this, to check accuracy and for crime prevention or detection of fraud, including data-matching initiatives designed to protect public funds.

— We will not share your personal data with third parties for commercial purposes.

— We will not use your personal data for marketing products or services without your consent.

— We will not keep your personal data for longer than necessary.

— We will keep your personal data secure — We will respect your right to access your

personal data.

We ask you toGive us accurate information. Also, that you tell us as soon as possible about any changes to your personal information, or if you notice mistakes or inaccuracies in the information we have about you, as this will help us keep our information reliable and up to date.

To obtain details of the information we have about you, contact the Corporate Information Compliance Officer, Democratic Services, Chief Executive’s Department, Manchester Town Hall, Albert Square, Manchester M60 2LA or email informationcompliance@ manchester.gov.uk

For more information about data protection contact the Information Commissioner’s Office, Wycliffe House, Water Lane, Wilmslow, Cheshire SK9 5AF www.ico.gov.uk

Council tax data – fair processing notice

One click, one call Your council tax services explained

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