LOCAL GOV FINANCE

Question 1

CAPITAL BUDGET - 14%

Answer 1

LONG TERM ASSETS (building schools, roads, houses)

Borrowing 1/3
Capital Grants 1/3
Rest from Capital receipts and PPP

Question 2

REVENUE BUDGET - 86%

Answer 2

DAY TO DAY SERVICES (staff salaries, heating, repayment of borrowing with interest)

Local Gov sources = council tax, locally chargeable services, rents and reserves

Central Gov Sources - Grants
Revenue Support Grant - council spend how they want, mainly UBR
Specific Grants - ringfenced for particular needs e.g. public health grant

Question 3

COUNCIL TAX

Answer 3

1/4 of councils revenue

Banding system - 8 bands, house prices in 1991

Single occupants 25% discount
Students, student nurses, mentally impaired exempt
Council tax reduction for those on benefits/low incomes

Largest portion goes to top tier authority

Question 4

UNIFORM BUSINESS RATES

Answer 4

LOCAL GOVERNMENT FINANCE ACT 2012

Now 50% goes to local area to be invested in local services