I have today placed in the House Library a copy of the report, “Application of Discretionary Council Tax Powers for Empty Homes”, by Roger Tym Partners in Association with Three Dragons. The report is also available on Communities and Local Government's website at:
The distribution of Formula Grant takes into account the relative needs and relative resources of each authority, relative to all other authorities providing the same services. There is also a central allocation and the floor damping mechanism.
The relative resources component reflects the authority's potential to raise income through council tax. For multi-year settlements, this is measured by projections of the council tax base.
The council tax base is the number of Band D equivalent properties. The number of dwellings in each band is calculated by taking the number of dwellings on the valuation list and adjusting for various exemptions and discounts.
For the 2008-09 to 2010-11 settlement, the projections of the tax base were calculated using the tax base as at 8 October 2007 and then applying the average annual increase between October 2005 and October 2007.
The number of dwellings that receive a discount because they are classed as long-term empty dwellings is taken into account in the calculation of the tax base.