Issue - meetings

To consider a report of the Cabinet Member for Finance & Resources.

This report deals with the forecast Collection Fund outturn position for 2023/24, the setting of the Council Tax Taxbase for 2024/25 and also presents a forecast for Business Rates income expected in 2024/25.These items form an integral and important part of the Council’s budget setting and MTFP process.

(1) The Cabinet is recommended to:

(i)        Declare a provisional forecast outturn Collection Fund surplus of £4.669m in 2023/24 relating to a Council Tax surplus of £0.902m and Business Rates surplus of £3.767m subject to the delegations below;

(ii)      Declare a provisional forecast outturn Collection Fund surplus to be appropriated to the Council’s General Fund in 2024/25 of £4.489m relating to a Council Tax surplus of £0.760m and Business Rates surplus of £3.729m subject to the delegations below;

(iii)     Approve the use of the declared surplus to support the Council’s 2024/25 Budget, MTFP and Collection Fund Reserve in the context of increasing budget pressures linked to price inflation, pay inflation particularly relating to recent Real Living Wage increase, high interest rates impacting the Council’s borrowing costs and increasing demand for services;

(iv)     Note the proposal for the Council Tax Discretionary Hardship Fund as set out in the Council Tax and Business Rates Discounts Annual Review report as per paragraph 2.3;

(v)      Note the 2024/25 Council Tax Taxbase for budget setting purposes of 98,396.6 Band D equivalent dwellings. The Council’s final 2024/25 Council Tax Taxbase will be presented for approval to the Council meeting on 11 January 2024;

(vi)     Note the 2024/25 Business Rates budget forecast subject to the completion of the NNDR1 (Business Rates budget) to be submitted to Government by 31 January 2024; and

(vii)    Note that the indicative Collection Fund resources identified are to be reviewed through the MTFP and 2024/25 budget setting processes following the Provisional Local Government Finance Settlement in December.

(2) The Cabinet is recommended to delegate the following decisions to the Deputy Chief Executive in consultation with the Cabinet Member for Finance & Resources:

(i)        The decision to change the provisional 2023/24 Collection Fund forecast outturn position prior to declaring the position on 31 January 2024 as required by legislation;

(ii)      The decision to continue in the Greater Manchester Business Rates pooling arrangement; and

(iii)     The decision to vary the Business Rates forecast presented in Table 7 linked to the submission of the NNDR1 (Business Rates budget) to Government.

Officer contact: Jonathan Davies on 0161 218 1025 or by email at jonathan.davies@stockport.gov.uk

The Cabinet Member for Finance & Resources (Councillor Jilly Julian) submitted a report (copies of which had been circulated) detailing the forecast Collection Fund outturn position for 2023/24, the setting of the Council Tax Taxbase for 2024/25, and a forecast for Business Rates income for 2024/25.

It was commented that Stockport’s collection rates were amongst the best in the north west of England, and members expressed their thanks and gratitude to officers for their ongoing work in ensuring the council’s financial position remained robust.

RESOLVED - (1) That a provisional forecast outturn Collection Fund surplus of £4.669m in 2023/24 relating to a Council Tax surplus of £0.902m and Business Rates surplus of £3.767m be declared, subject to the delegations below.

(2) That a provisional forecast outturn Collection Fund surplus to be appropriated to the Council’s General Fund in 2024/25 of £4.489m relating to a Council Tax surplus of £0.760m and Business Rates surplus of £3.729m be declared, subject to the delegations below.

(3) That approval be given to the use of the declared surplus to support the Council’s 2024/25 Budget, MTFP and Collection Fund Reserve in the context of increasing budget pressures linked to price inflation, pay inflation particularly relating to recent Real Living Wage increase, high interest rates impacting the Council’s borrowing costs and increasing demand for services.

(4) That the proposal for the Council Tax Discretionary Hardship Fund be noted as set out in the Council Tax and Business Rates Discounts Annual Review report as per paragraph 2.3.

(4) That the 2024/25 Council Tax Taxbase for budget setting purposes of 98,396.6 Band D equivalent dwellings be noted.     

(5) That the 2024/25 Business Rates budget forecast be noted subject to the completion of the NNDR1 (Business Rates budget) to be submitted to Government by 31 January 2024.

(6) That it be noted that the indicative Collection Fund resources identified are to be reviewed through the MTFP and 2024/25 budget setting processes following the Provisional Local Government Finance Settlement in December.

(7) That the following decisions be delegated to the Deputy Chief Executive in consultation with the Cabinet Member for Finance & Resources:

(i)        The decision to change the provisional 2023/24 Collection Fund forecast outturn position prior to declaring the position on 31 January 2024 as required by legislation;

(ii)       The decision to continue in the Greater Manchester Business Rates pooling arrangement; and

(iii)     The decision to vary the Business Rates forecast presented in Table 7 linked to the submission of the NNDR1 (Business Rates budget) to Government.