Paying for local services (Theme A) Flashcards
How do local councils and county councils obtain funds to pay for the services they provide?
Council tax, business tax, government grants and income from charges.
What factors affect decision-making when managing the budget to meet needs?
- priority spending on key areas such as education and social care.
- trading off other areas of spending (e.g. leisure) to create funds for priority spending.
- targeting spending for needs specific to local areas (e.g. inner city, suburb, small town, rural).
Who is council tax collected by?
District, borough and unitary authorities.
Who sets the amount a council can collect as council tax?
Central government - it can be capped.
What is a proportion of this money collected for (in terms of services)?
County council services, such as the police and fire service
Town or parish council services, such as maintenance of parks
Who must pay council tax and what are the costs based off?
Every household
Based off home value
Why can the revenue collected by councils vary?
More affluent areas pay more than deprived areas
What is the amount of business rates payed determined by?
The open market rental value of the buildings they operate from
Who sets business rates?
Central government
What did the Local Government Finance Act 2012 do?
Local councils were given the power to keep half go the business rates collected in order to encourage new businesses, perhaps by regenerating a shopping area to attract new retailers.
What happened to the other half of the money not spent by the Local Government Finance Act 2012?
Given to central government and distributed nationally as grants to councils depending on need.
What happens to the amount of business rates when a business closes down and no longer pays rent?
The amount reduces.
Who do central governments provide grants to?
Local government (local councils and county councils) each financial year.
Give examples of central government grants that must be provided
Education and social care
What is the money given to each local authority calculated by?
Area needs
What did austerity plans see between 2010 and 2015 and what does this mean for local councils?
They saw a 37% reduction of local government grants
Local councils therefore have to plan carefully where their funding will be spent
What can councils do to some council services?
Give examples
Make chargers and fees for them
e.g. parking fees on council land and bulky refuse collection
Give an example of council charges
Admission to local leisure centres
What do some councils do (and what are they responsible for)?
Charge rent for a stock of council or social housing, though they also have responsibility to maintain them to have a ‘decent home’ standard
Give examples of services that councils are not allowed to charge for
Education, elections, standard refuse collection, and libraries
