The net collection rate for Council Tax at the end of March 2025 was 95.05% of the £185.055m liability and Business Rates 97.07% of the £97.049m. If the rate of collection continues at this level a deficit may be created which will impact on funding resources in 2026/27.

The net collection for Council Tax at March 2025 was a slight reduction of 0.30 % on the position as at March 2024 when it was at 95.35% and a reduction of 0.16% for Business Rates.

At the Autumn Budget on 30 October 2024, the Chancellor announced the freezing of the small business multiplier in 2025/26 and the intention to introduce new, permanently lower multipliers for retail, hospitality, and leisure properties with a rateable value under £500,000.  This is being funded by a new higher multiplier on all properties with a rateable value of £500,000.

In Bexley, the total number of working age claimants (Council Tax Reduction Scheme) at March 2025 was 8,302 in comparison with 8,799 in the previous March, a reduction of 5.64%.

The total number of pension age claimants (Council Tax Reduction Scheme) at March 2025 was 4, 210, in comparison with 4,342 in the previous March, a decrease of 3.04%.

Overall though the Pension-age caseload (Council Tax Reduction Scheme) remains relatively stable since 2021/22, with relatively minor fluctuations (less than 100 caseload change year on year).

Bexley’s element of the Council Tax deficit relating to 2024/25 was £1.710m and this already assumed in 2025/26 budget, to be funded from the Collection Fund Reserve.

Bexley’s Collection Fund reserve as at 31 March 2025 was £26.174m.  This will be used to manage the risk of collection rates, collection fund timing differences and the potential impact of the business rates reset. Should there be a deficit position beyond 2026/27, further funding will need to be identified.