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Council Tax: Grants

Volume 464: debated on Friday 19 October 2007

To ask the Secretary of State for Communities and Local Government (1) what assumed council tax collection rate is used by her Department in the grant distribution formula; and whether this assumed rate varies according to the type of local authority; (157675)

(2) whether councils which have poor (a) council tax and (b) business rates collection rates receive lower total funding after the adjustments of equalisation; and whether councils with above-average collection rates are allowed to keep the additional income after the adjustments of equalisation.

No assumptions are made about an authority’s collection rates of either council tax or business rates in the distribution to them of formula grant. Formula grant consists of Revenue Support Grant and redistributed National Non-Domestic Rates and, where appropriate, principal formula Police Grant.