Council Tax Calculations 2022/23

How your Council Tax is calculated

Cherwell Council Tax charges by band

Your Council Tax demand or exemption notice shows which band has been allocated to your property. 

View Council Tax charges for 2022/23

The Council Tax explanatory notes form part of your Council Tax Demand Notice. 


Increase for 2022/23 

The increase to Council Tax was agreed at the Council meeting on Monday, 28 February 2022.  

Calculation of the tax base (see section below)
The starting point of the calculation is the total number of Council Tax dwellings and their Council Tax band at a point in time.  For 2021-22 this was as at 30 November 2020.  

Council Tax in parishes
This shows how the Band D for each Parish in the district is made up.  It starts with the tax base in each Parish, what they have set as their precept (how much they need for the year to provide their services), and how much that works out per property.  To that are added the Band D requirements of Cherwell District Council, Oxfordshire County Council and the Police to get the full Band D council tax for each Parish.

Council Tax in Band D in each Parish
This shows the full council tax bandings (A to H) for all Parishes in the district.  The different Band amounts are derived from the Band D figures in Appendix 22 using the weightings prescribed by law. 

For example: Adderbury’s Band D Council Tax is £2,074.26.  Band A is 6/9 (66.67 per cent) of the Band D amount or £1,382.84.  Band H is 18/9 (200 per cent) of the Band D amount or £4,148.52. 


How we spend Council Tax funds

Thirty-six per cent of our funding for services comes directly from Council Tax, with the rest coming from government grants and business rates. This helps us to provide and support a huge range of services that enhance and improve the lives of people across our whole community.   

Our 2022/23 strategic priorities are:

  • Housing that meets your needs
  • Leading on environmental sustainability
  • An enterprising economy with strong and vibrant local centres
  • Healthy, resilient and engaged communities

Your Council Tax bill is made up of several different amounts of money that go to different organisations:

  • Cherwell District Council (6.7 per cent) 
  • Town and parish councils (4.7 per cent)
  • Oxfordshire County Council (77.3 per cent)
  • Police and Crime Commissioner (11.3 per cent)

Adult Social Care

The government also allows councils (Oxfordshire County Council) to raise up to 3 per cent adult social care precept to help relieve funding pressures in 2022/23.

Calculation of the tax base

The starting point of the calculation is the total number of council tax dwellings and their council tax band at a point in time.  For 2022/23 this was as at 30 November 2021.

 The council then allows for the following information and estimates for each band:

(a) Dwellings which are exempt, so no council tax is payable (e.g. those where all occupiers are students)
(b) Dwellings which attract a 25 per cent reduction (e.g. those with a single adult occupier)
(c) Dwellings which attract a 50 per cent reduction (e.g. those properties where all adult residents are disregarded or ‘don’t count’ for council tax purposes)
(d) Dwellings which are treated as paying a lower band because they have been adapted for a disabled person. The regulations specify how to adjust the tax base in respect of band A dwellings.
(e) Dwellings which attract a reduction through the Council Tax Reduction Scheme.
(f) Dwellings which are exempt from Council Tax

Each band is then converted into “band D equivalents” by applying the factor required by legislation. A band H, for example, is multiplied by two. All of these are added together to give a total number of band D equivalents.

A further adjustment is made for Class O exempt properties (Armed forces’ accommodation) as the Ministry of Defence makes a payment roughly equal to the council tax that it would have had to pay for each property if they were not exempt.

We also estimate the number of properties which will be either added to or removed from the Valuation List in the new financial year and make an adjustment to reflect that they won’t all be subject to full council tax for 12 months.

A final adjustment is made to allow for non-collection. The council is required to decide what its collection rate is likely to be and applies this to its council tax base. For 2021/22 this was 98 per cent and it continues to be 98 per cent in 2022/23.

Council Tax calculations : 2021/22 and 2022/23

CDC
Services
2021/22 
£ 
Incl Parish 
Precepts
2021/22
£
Council Tax calculations
 
CDC 
Services
2022/23
£ 
Incl Parish 
Precepts
2022/23
£
110,081,209 110,081,209 CDC Services
Gross Expenditure
110,369,935 110,369,935
  5,450,911 Parish Precepts   5,762,529
110,081,209 115,532,120 Gross expenditure 110,369,935 116,132,464
(102,399,407) (102,399,407) Less: Estimated Income
(incl. Business Rates, NHB, RSG)
(101,858,905) (101,858,905)
21,000 21,000 Council Tax (Surplus)/Deficit (360,000) (360,000)
7,702,802 13,153,713 Council Tax Requirement 8,151,030 13,913,559
55,615.90 55,615.90 Divided by Taxbase 56,801.60 56,801.60
138.50 236.51 Band D Council Tax 143.50 244.95

Movements year on year

Calculations CDC Services
£
CDC Services
per cent
Inc Parish Precepts
£ 
Inc Parish Precepts
per cent
CDC Services
Gross Expenditure
288,726 0.3  288,726 0.3
Parish Precepts     311,618 5.7
Gross expenditure 288,726 0.3 600,344 0.5
Less: Estimated Income
(incl. Business Rates, NHB, RSG)
540,502 -0.5 540,502 -0.5
Council Tax (Surplus)/Deficit (381,000) -1814.3 (381,000) -1814.3
Council Tax Requirement 448,228 5.8 759,846 5.8
Divided by Taxbase 1,185.70 2.1 1,185.70 2.1
Band D Council Tax 5.00 3.6 8.44 3.6