How is Prescot Town Council funded ?
Prescot Town Council is predominately funded through the Annual Precept with support from the Local Council Tax Support Scheme administered by Knowsley Metropolitan Borough Council (through the Revenue Support Grant it receives from Central Government). In addition to its core funding the Town Council also derives an income from the business activities carried out at the Town Hall which helped to ensure the Precept has been maintained at its current level for the last five years.
What is the Precept?
Each year around January / February the Town Council agree an annual balanced budget for the forth coming financial year. In order to balance the budget income is matched against expected expenditure requirements for the year. The Precept is the amount of money required to meet the Town Councils expenditure requirements after taking into account the Local Council Tax Support Grant and any expected income from the Town Hall operations.
What is the Local Council Tax Support Scheme?
The Local Council Tax Support Scheme was introduced in 2013 following Central Government’s decision to scrap Council Tax Benefit. Previously Local Authorities received a payment from Central Government to compensate for households not paying council tax (in receipt of Council Tax Benefit) which helped to support the provision of services. Since 2013 Local Authorities have been required to administer their own Council Tax Benefit received tapered support from
Unfortunately the Town Councils funding from the Local Council Tax Support Scheme has been reduced year on year since its introduction in 2013. In 2013 the Town Council received an allocation of £67,908 this year’s allocation was £22,115 representing a total loss of £45,433 over the three years. Central Government have also announced the Local Council Tax Support Grant element of the total Revenue Support Grant will cease in 2018, meaning the Town Council will suffer the complete loss of grant.
The total Precept for the 2017/18 financial year is £230,303. The Precept is usually expressed as the Band D Equivalent and currently stands at £79.55 per household however some will pay more and others less dependent on their property band the majority of housing stock in Prescot is within bands C,B and A therefore most will pay a lower rate. The precept can also be expressed as 49p per week per elector or roughly 25p per resident.