Local Council Tax Support grant

We have been contacted by quite a few councils relating to the potential loss of LCTS, as local councils will have to increase the precept to 'bridge the gap'.

Councils could consider the option of increasing the precept alongside the LCTS, and accrue funds (into financial reserves), to be used when the grant ceases in order to soften the blow, especially as the precept is not being capped currently.

Please note, local councils do not have to provide this information straight away; district councils require the figures by 30th January 2016.

As this is a national issue, we have obtained a view from NALC, who have said:-

"That stance is sensible. We will know more, after 25/11 on both capping and LCTS parish mitigation grant in the Autumn Statement and Spending Review.

LCTS grant is currently part of the Billing Authority grant provided by Central Govt. This will diminish by the end of this Parliament - as will the parish LTCS mitigation grant - so as long as parishes are not capped they need not be afraid of reasonably increasing their precept".

Posted: Mon, 09 Nov 2015 15:08 by Alison Robinson

Tags: Local Council Tax Support grant, budget, finance