In 2013/14 and 2014/15 the Ministry of Housing, Communities and Local Government (MHCLG) have paid Billing Authorities a combined total for each financial year of £3.3b to officially refer on to local councils in their areas to minimise the reduction of parish precept revenue following the diminution of average council tax bases in parished areas over the last two years. Accordingly, In 2014/15 most Billing Authorities nationally passed on the Localisation of Council Tax support mitigation grant to parishes in their areas, but 15 did not.
NALC lobbied the government very hard to ensure that it put pressure on Billing Authorities to pass across to all parishes in their areas the maximum amount of Localisation of Council Tax support parish mitigation grant in 2015/16.
That way the impact of the average 10% reduction to parish council tax bases over the last two financial years has been minimised so that services can continue as seamlessly as possible in parished areas.
Despite uncertainty as to how much capital funding the coalition government is referring on to Billing Authorities in 2015/16 due to the intervening general election, NALC and county associations will continue to lobby government to ensure that maximum Localisation of Council Tax support funding is referred on to Billing Authorities and that Government communicates its plain expectation to all Billing Authorities that the monies should be referred immediately on to parish councils in their areas in 2015/16. We will know for sure the Government's intentions by the Local Government Finance Settlement in December 2014 and the sector will be advised accordingly.