Issue - decisions
Collection Fund 2013/14
The Leader of the Council introduced a report by the Director of Resources, which estimated the Collection Fund position for the year ending 31 March 2014.
The Council maintained a Collection Fund to record the Council Tax and Non-Domestic Rates collected and paid to the precepting authorities and to central Government.
Any surplus or deficit on the Fund must be shared pro-rata to the existing precepts on the Fund. Based upon the 2012/13 precepts and taking the above factors into account the Collection Fund balance for the year ending 31 March, 2014 was estimated to be nil. Any surplus or deficit position would be allocated to precepting authorities as follows:
Precepting Authorities %share £
Wirral Council 85.18 0
Police and Crime Commissioner for Merseyside 10.24 0
Merseyside Fire and Rescue Services 4.58 0
Total 100.00 0
On 1 April 2013 a new Local Government Finance System was introduced. The previous NNDR ‘central pooling’ arrangement, under which authorities received a guaranteed payment, had ceased. Under the new arrangements, billing authorities retained a proportion of locally raised business rates and either payed a tariff or as in Wirral’s case received a top-up to ensure a comparable starting position with the previous funding system.
The authority was required at the same time of forecasting its 2013/14 surplus/deficit position (31 January, 2014) to provide a forecast of predicted business rates income for the 2014/15 year. The detailed guidance and instruction would be confirmed by Government on 17 January, 2014. It was recommended that the NNDR surplus deficit forecast for 2013/14 and 2014/15 initial estimate be made via a delegated decision of the Council leader in conjunction with the Director of Resources. This was due to a number of factors, including that the NNDR was a volatile tax area; there was a month’s gap between the report being written and the required submission date; the above guidance was not yet available which could impact upon the 2013/14 estimate and Cabinet dates meant that there was no other meeting before the NNDR forecasts submission date of 31 January.
(1) the declaration of an estimated nil balance position for the Collection Fund for the year ending 31 March 2014, which is in accordance with current budget assumptions, be noted;
(2) that the declaration of the 2013/14 NNDR surplus/deficit position and the 2014/15 initial forecast be made under delegated powers by the Leader in conjunction with the Director of Resources on or before 31 January, 2014.