Council Tax Support Ray Bowmer, Head of Finance Parish Council Liaison Meeting 30 October 2013

New Arrangements From 1 April 2013 End of Council Tax Benefit and Government Funding through Benefit Subsidy Replaced with Council Tax Discounts affecting District, County, Police, Fire and Parish Councils Government Grants to pay for Discounts at least 10% less than Benefit Subsidy

Bridging The Gap In North West Leicestershire the Gap was £586,000 but has been met by: Less Generous Scheme – People pay at least 8.5% Less Generous Empty Property Discounts

1. Reduced Council tax because of Council Tax Support Discounts 2.Increased Council Tax from Empty properties 3.District is bridging the gap with grants to maintain 2012/13 funding levels Effect on Parish Councils:

Local Council Tax Support Government Grant This is paid to District, County, Police and Fire but not Town & Parish Councils The Government asked District to give a share of its grant To Towns & Parishes to maintain their funding which we did for 2013/14 Rolled into mainstream grant from 2014/15 so effectively reducing very sugnificantly

Review of Scheme for 2014/15 Transitional Funding in 2013/14 to keep contributions to 8.5% Transitional Funding removed from next year District’s funding reduces every year. It has NOT been maintained. District is consulting on 10%, 15% and 20% schemes Parish Councils will receive more Council Tax if the scheme changes and will be less dependent on grants Higher Council tax Base Grants will be adjusted to maintain 2012/13 funding levels Towns and Parishes continue to precept as they wish

Timetable for 2014/15 September/October 2013 – Consultation on new LCTSS December Cabinet recommends new LCTSS December Provisional CTB and Grants notified January 2014 – Cabinet recommends final CTB January 2014 – Council approves final LCTSS February 2014 – Cabinet recommends and Council approves Budget

New Homes Bonus Ray Bowmer, Head of Finance Parish Council Liaison Meeting – 30 October 2013

Started in 2011/12 Payments made for six years for each new home or home brought back into use Payment represents equivalent of average national council tax 80% goes to districts and 20% to County so is not meant to mirror normal distribution of Council Tax In no way ringfenced, can pay for anything that new homes creates a demand for

Use of New Homes Bonus Our Government Grant has reduced every year and will continue to fall for the foreseeable future New Homes Bonus has been used to balance the budget instead of Council Tax increases, increases in Fees & Charges or significant service reductions Everyone has benefitted The amount of New Homes Bonus has increased each year and was expected to peak in 2016/17 when we would be receiving grant in respect of the previous six years’ new homes Every £1 of New Homes Bonus spent on something else would add £1 to the existing savings targets

Changes to New Homes Bonus From 2015/16 £400m out of £1,100m nationally being taken away from Councils Money going to the LEPs to spend Consultation on how to share the reduction Pro-rata – NWLDC would lose £490k out of £1.3m in 2015/16 LCC could be hit harder through another option Account might be taken of commitments already made Likely to know in December 2013