Wealden District Council

Example of precept calculation changes

Example of how precept calculations are changing

Previous method:

New method:

Notion Hall Parish Council Precept Calculation 2012/13

Notion Hall Parish Council Precept Calculation 2013/14

Parish Council budget

£1,000

Parish Council budget: (i.e. freeze)

£1,000

Tax base consists of 10 Band D properties of which one household is in receipt of Council Tax Benefit

Tax base consists of 10 Band D properties of which one household receives payment from the Council Tax Support Scheme

Band D Council Tax = £100 per property

Band D Council Tax = £100 per property

Precept = 10 x £100

£1,000

Precept = 9 x £100

£900

Cash from tax payers

£900

Cash from tax payers

£900

Council Tax Benefit

£100

Total Receipts

£1,000

Total Receipts

£900

Add Government Council Tax Support Grant £100 x 90% = £90

£90

Budget deficit/surplus

£0

Budget deficit/surplus

- £10

Note:

Setting the same precept for 2013/14 is therefore unlikely to raise the same amount of Council Tax as it did in 2012/13.  If there is a shortfall, town and parish councils will need to decide whether to increase their precept or reduce their budget. Another consideration is that the Secretary of State may decide to apply a trigger for a local referendum if an increase in precepts is more than 2%. This has yet to be announced.