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 2024/25.

Decision

That the action of the Chief Finance Officer in declaring a Council Tax deficit of £400,924 for 2024/25, to be distributed in 2025/26 be confirmed.

Alternative Options Considered and Rejected

None. Prior to setting the Council Tax for 2025/26 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 (2024/25).

Reasons for the Decision

The Council would declare a deficit on Council Tax £400,924 for the financial year 2024/25, with the City Council’s share being £56,359, to be distributed in 2025/26.

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.

Based on the forecast position of the in-year Collection Fund as at 31 March 2025 and taking into account an adjustment for the difference between prior year estimates compared to the actual outturn it was estimated that there would be a deficit of £400,924 on the Council Tax element of the Collection Fund in 2024/25, distributed as follows in 2025/26: