Issue - meetings

As part of the Council Tax setting process for 2015/2016 the Council is required to estimate the amount of any surplus or deficit on the Collection Fund as at 31 March 2015. This must be done by 15 January 2015 in relation to Council Tax, and this report asks Members to approve the estimated balance for both Council Tax and Business.

i) that the estimated Collection Fund balance relating to Council Tax at 31

March 2015 as a surplus of £5.0m be agreed;

ii) that the current estimated balance relating to NNDR at 31 March 2015 as zero (no surplus or deficit) be noted;

iii) that authority be delegated to the Chief Finance Officer to amend these figures should material new information, such as debt collection performance, come to light in the intervening period.

The report before the committee from the Chief Finance Officer sought approval of the estimated balance for both Council Tax and Business rates (NNDR). As part of the Council Tax setting process for 2015/2016 the Council was required to estimate the amount of any surplus or deficit on the Collection Fund as at 31 March 2015.  For Council Tax, as a result of continued effective collection of amounts due to the council it was now possible to return the benefits of this as a one-off contribution to support the 2015/16 budget. Brent Council’s share of the total surplus of £5m was £3.9m. This technical surplus related to council tax due on or before 31 March 2014, where the council had been more effective than previously assumed in collecting arrears, and also reflected strong collection performance of debts relating to 2014/15, and increases in the net collectable figure.

With regard to business rates, it was highlighted that there were many factors which could significantly affect the overall figure including entitlement to reliefs and properties coming on to, or being taken out of rating. Conrad Hall (Chief Finance Officer) advised that the greatest uncertainty concerned revaluations arising from appeals against the Valuation Office determinations. It was therefore recommended that a forecast of no surplus or deficit was assumed at present and the estimate for the Business Rates income figure for 2015/16, and the surplus or deficit figure as at 31 March 2015 would be taken from the NNDR1 return to be submitted in January.

RESOLVED:

    (i)        that the estimated Collection Fund balance relating to Council Tax at 31 March 2015 as a surplus of £5.0m be agreed;

   (ii)        that the current estimated balance relating to NNDR at 31 March 2015 as zero (no surplus or deficit) be noted;

  (iii)        that authority be delegated to the Chief Finance Officer to amend these figures should material new information, such as debt collection performance, come to light in the intervening period.