The Council is required to maintain a Collection Fund to record the Council Tax and National Non-Domestic Rates collected and paid to the precepting authorities and to Central Government.

Resolved:

1.  That the declaration of an estimated £0.59 million surplus balance position for the Council Tax proportion of the Collection Fund for the year ending 31 March 2019 be notified to the precepting bodies. Wirral’s share is £0.50 million.

2.  That the declaration of the 2018/19 National Non-Domestic Rates (Business Rates) surplus/deficit position and 2018/19 initial forecast be made by the Cabinet Member for Finance and Income Generation in conjunction with the Director of Finance & Investment (Section 151 Officer) on, or before, 31 January 2019. This forecast is yet to be finalised.

3.  That any Council share of the ‘one-off’ distribution from the Collection Fund, currently estimated as surplus regarding Council Tax be added to the General Fund balances for use in supporting the General Fund budget.

4.  That any surplus or deficit position arising from the estimated NNDR position as at 31 January 2019 be reflected in the 2019/20 budget and General Fund balances.

In accordance with the Local Authority (Funds) (England) Regulations 1992, the Authority must annually estimate the likely surplus or deficit for the current financial year on the Council Tax account within its Collection Fund. The estimate should be made on, or as close to, the 15 January as possible but cover the period up to 31 March. The Authority must notify the precepting bodies of the Fund within 7 days of the 15 January and the estimated surplus or deficit can then be taken into account by the precepting bodies in setting their Budget and likely Precept requirements on the Collection Fund for the following year.

For National Non-Domestic Rates the Non-Domestic Rating (Rates Retention) Regulations 2013 require billing authorities to calculate any central share and each relevant receipting authority’s share of its non-domestic rating income. This should be notified on or before 31 January and include a forecast surplus/deficit position for the current year and an initial forecast for the following financial year.

The release of ‘one-off’ Collection Fund resources is added to the General Fund Balances. This can then be available to support the General Fund Budget.