This report explains the recommended approach to the funding changes as a result of the abolition of the council tax benefit scheme and the introduction of the council tax reduction scheme and the recommended funding allocation to parish councils

(a)        Cabinet recommends to Council that estimated council tax reduction support  scheme grant funding of £289k is passed onto parishes in 2015/16 (as it was in 2014/15).

It is recommended that the governments Council Tax Support Scheme grant is allocated to parish and town councils as intended by the funding allocation.

1              Alternatively the £289k central government funding could be retained by the council as a contribution to its savings targets meaning parishes would either have to reduce their budgets or increase their precept by an average of 10% (see appendix 1).

2              Some authorities have taken this course of action but it is being challenged by parishes so may be overturned.  Changing the approach would cause problems for parishes at a time when the council wants them to take on more services.

3              Reduce the funding by an equivalent level to central grant reductions.  Currently the revenue support grant that the council tax reduction scheme forms part of is being reduced by between 5% and 7% per annum.

4              Reducing the grant by an amount to reflect this reduction, say 10% makes very little difference (£29k).