At the Parish Council meeting held on 30th January 2025, the Parish Council approved a precept of £11,349. This equates to an increase of £3.90 per year for a Band D property.
Councillors worked hard to keep the precept as low as possible; however, two significant factors made this particularly challenging:
- National Insurance Increase: The government’s decision to increase National Insurance contributions as part of a broader strategy to address the nation’s fiscal challenges has increased costs for the Parish Council.
- Reduction in the Council Tax Base: The Council Tax Base for the Parish has decreased, which is an unusual occurrence. This reduction impacts the distribution of the precept and can happen for reasons outlined in the article below.
What is the Parish Council Precept?
The Parish Council Precept is the primary source of income for your Parish Council. It is a local tax that forms part of your overall Council Tax bill. Each year, the Parish Council determines the funding it needs to deliver services, maintain community facilities, and support local projects. This amount is submitted to Chelmsford City Council, which includes it in the Council Tax charges for residents.
How is the Precept Calculated?
The Parish Council carefully reviews its budget requirements for the upcoming financial year, taking into account:
- Costs of running and maintaining local services, such as parks, community centres, and public spaces.
- Planned improvements or new projects.
- Contingency funds for unexpected expenses.
- Once the total budget is agreed, this amount is divided by the Council Tax Base.
What is the Council Tax Base?
The Council Tax Base is the number of taxable households in the Parish, adjusted to account for factors like:
- Discounts (e.g., single-person households).
- Exemptions (e.g., certain properties like newly built empty homes, student accommodations and many more factors).
- Variations in Council Tax banding.
The result is a figure that represents the ‘effective number of properties’ in the Parish for tax purposes. By dividing the total precept by the Council Tax Base, the Parish Council determines the amount each household will contribute.
Why is the Precept Important?
The precept enables the Parish Council to:
- Deliver essential services tailored to local needs.
- Fund improvements that enhance the quality of life for residents.
- Maintain and protect community assets.
How Does It Affect Residents?
For residents, the Parish Council Precept appears as a portion of your annual Council Tax bill. While the amount may vary slightly depending on your property’s Council Tax band, the contribution supports services and facilities that directly benefit the local community.
If you have questions about the precept or how it is used, please email the clerk at clerk@goodeasterparishcouncil.gov.uk