Predicted 2017/18 Collection Fund has £1.436m surplus

The predicted 2017/18 Collection Fund has a surplus of £1.436m extra, Thursday’s (14 September) Budget Cabinet meeting noted.

Councillors approved the report underlining the Collection Fund position, which was presented by Councillor Allen Brett, Deputy Leader and Cabinet Member for Corporate & Resources.

This comprises £0.071m deficit relating to business rates, and £1.507m surplus relating to council tax.

Councillor Brett explained: "The £70,000 deficit in business rates is from our successful scheme helping local businesses. We will recoup this in the future. Most businesses have stayed, showing they are sustainable."

The Collection Fund Account reflects the statutory requirement for the Council to maintain a separate fund in relation to the billing and collection of Business Rates and Council Tax. The Council’s share of the forecast 2017/18 Collection Fund surplus as at 31st July 2017 is £1.237m.

The Local Government Finance Settlement 2017/18 included the introduction of the 100% retention of Business Rates for various regional pilot authorities, including Greater Manchester. The pilot authorities will each retain 100% of locally raised Business Rates, of which 99% is retained by the local authority, and 1% retained by Greater Manchester Combined Authority in respect of GM Fire and Rescue Authority.

The Government’s 2017 Spring Budget included additional initiatives, in the form of discretionary reliefs, to support businesses that have been significantly affected by the 2017 Business Rates revaluation. Approximately £0.360m has been included in the forecast outturn to reflect the possible relief that will be given. This was not known about when the 2017/18 Budget was set, so has impacted on the outturn position forecast.

The Council will receive Section 31 grant to compensate for this loss of income, and this will be credited to the General Fund.

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