Issue - meetings

Purpose of Report

To inform Members of the estimated balance for the Council Tax element of the Collection Fund and the surplus or deficit to be declared for 2023/24.

Decision

That the action of the Chief Finance Officer in declaring a Council Tax deficit of £730,117 for 2023/24, to be distributed in 2024/25 be confirmed.

Alternative Options Considered and Rejected

None. Prior to setting the Council Tax for 2024/25 the City Council was required to estimate whether there was to be a surplus or deficit on Council Tax element of the Collection Fund for the current financial year (2023/24).

Reasons for the Decision

The Council would declare a deficit on Council Tax £730,117 for the financial year 2023/24, with the City Council’s share being £104,334, to be distributed in 2024/25.

As a Council Tax Billing Authority, the City Council was required to estimate whether there was to be a surplus or deficit on the Collection Fund for the current financial year, prior to setting its Council Tax for the next year. The calculation was based on an estimate of tax collected in-year compared to the estimate made the previous year, taking into account any previously declared surplus or deficit and the expected year-end arrears position.

The Council was required to declare any surplus or deficit during January of each financial year and once approved had an obligation to notify its major precepting authorities (Lincolnshire County Council and the Police and Crime Commissioner for Lincolnshire) of their share of the estimated surplus or deficit.