Business Rates and Council Tax Collection Fund has £2.013m surplus
Date published: 29 November 2017
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The forecast Collection Fund position for 2017/18 is a surplus of £2.013m, Tuesday’s (28 November) Council Cabinet meeting heard.
(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.)
This comprises £193,000 surplus relating to business rates and £1.82m surplus relating to council tax.
The Council’s share of the forecast 2017/18 Collection Fund surplus as at the end of September 2017 is £1.769m.
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 £381,000 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 its share of the loss of income, and this will be credited to the General Fund.