Following a number of enquiries about this year’s precept I have detailed below the background to the increase which I hope  will answer your queries.

Put simply, the precept rose from £276,400 to £316,500 which is in the region of 14%.

However, the government decided to fund to 90% the rate relief on those properties in receipt of Council tax benefit – instead of 100% as previous Governments had.

This, therefore had the effect of completely changing the tax base on which the precept is calculated.

The government left it to primary authorities to decide whether or not to pass the precept component on to Town/Parish Councils. Leeds City Council (LCC) decided to and their calculation is that Otley would be due in the region of £28,000.

Theoretically that could have been used to reduce the precept, which would have meant that the precept rise would have been 14% instead of 25%. However, the LCC decision was taken after the precept meeting of the Council – and there was no way of second guessing what Leeds would do in relation to passing on this component, and there are strict deadlines as to when the Town Council has to notify Leeds of its precept requirements for the next financial year.

A number of primary authorities have taken the decision not to pass this funding on to Parish/Town Councils – so the ultimate decision could not have been known.

For your information the majority of other Town/Parish Councils have taken a similar line – for example Horsforth Town Council increased their precept by about 9% but their ratepayers are seeing a 17% increase. Perversely Morley Town Council which set a neutral budget (ie 0% increase) see their ratepayers having an approximate 12% rise in their precept.

The effect of this is to increase a Band D property by £14.30 for the year or 27p per week.

Suzanne Kidger
Executive Officer