A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
Aggregate External Finance (AEF)
The total level of support the Government provides to local authorities. This support is normally made up of Revenue Support Grant, police grant, specific formula and ring-fenced grants and the amount distributed from business rates.
Area Cost Adjustment (ACA)
The scaling factor applied to FSS to reflect higher costs - mostly pay - in some council areas.
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B
Balance Sheet
A summary of the organisation's financial position. It sets out the values of all the organisation's assets and liabilities at a given date.
Band D
The Council Tax is based on property values. Dwellings have been assigned to one of eight valuation bands (bands A to H). The Council Tax for each band is a fixed proportion of the Band D tax. For example, the tax for a Band H property is twice that of a Band D, whereas a Band A is two thirds.
In calculating the likely yield from the tax, the tax base (number of taxable properties) is expressed as the number of "Band D equivalents" so that, for example, a Band H property equates to two Band D equivalent properties.
Billing Authorities
These are the 353 authorities that collect Council Tax - district councils, London boroughs, and unitary authorities. The County Council is not a billing authority - this function is carried out by the six Cheshire District Councils.
Block Grant
see Formula Grant
Bracketed Figures
In financial reporting and publications, brackets ( ) are frequently used to show income figures or a surplus of income over expenditure. Brackets can also be used to show which figures in a list should be deducted from - rather than added to - the cumulative total.
Budget
An approved financial plan which has been formulated to meet agreed policy objectives over a given period. Provides a basis for monitoring and accountability.
Budget Requirement
This is the amount each authority estimates as its planned spending, after deducting any funding from reserves and any income it expects to raise (other than from the Council Tax and general funding from the Government, i.e. Formula Grant and, sometimes in the past, certain special grants). The budget requirement is set before the beginning of the financial year.
These rates, called National Non-Domestic Rates, are the means by which local businesses contribute to the cost of providing local authority services. All business rates are paid into a central pool. The pool is then divided between all authorities depending on the number of residents each authority has.
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C
Capping
When the Government limits an authority's budget requirement, and hence the council tax it sets.
Comprehensive Spending Review (CSR)
Bi-annual announcement by the Chancellor on the Government's 3-year spending plans. Allocations for individual authorities are not known until the annual RSG announcements in November / December.
Council Tax
A local tax on domestic property set by local authorities in order to meet their budget requirement. The tax is levied on a scale linked to the value of properties in the tax area.
Council Tax Bands
There are eight Council Tax bands, Band A to Band H. How much Council Tax each household pays depends on the value of the homes (the most recent county valuation was undertaken in April 1991).
Council Tax Base
The Council Tax base of an area is equal to the number of band D equivalent properties. To work this out, the Government counts the number of properties in each band and works out an equivalent number of band D properties. For example, one band H property is equivalent to two band D properties, because it pays twice as much tax. The amount of revenue which could be raised by Council Tax in an area is calculated allowing for discounts and exemptions but, for the purpose of the Formula Grant calculation, assuming that everyone pays.
Council Tax Discounts and Exemptions
Discounts are available to people who live alone and owners of homes that are not anyone's main home. Council Tax is not charged for certain properties, known as exempt properties, such as those lived in only by students.
Credit Approvals - Basic (BCA) or Supplementary (SCA)
Not cash, simply permission from Central Government to borrow. Basic Credit Approvals can be used to finance any capital expenditure. Supplementary Credit Approvals are limited to specific schemes. Credit approvals attract some additional FSS to help service the additional debt - but not on a pound for pound basis.
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Distributable Amount
This is the estimated total amount in the business rate pool that is available to be distributed to local authorities. The business rates are collected by local authorities and paid into a national pool and then redistributed to all authorities.
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F
Finance Procedure Rules (also known as Financial Regulations)
A framework of rules and procedures within which the Council will conduct all financial affairs and which defines the respective roles and responsibilities of the County Council, its members and officers on financial matters.
Fixed Costs
An element of an authority's costs which do not vary with size; this mainly consists of the costs of the corporate and democratic core an an authority, sometimes described as "the costs of being in business, not the costs of doing business".
Comprises Revenue Support Grant, redistributed business rates and (for relevant authorities) police grant. Previously known as Block Grant.
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G
Green Book
The final MTS publication, containing agreed policy and expenditure proposals from political groups and the outcome of budget consultation.
M
Medium Term Strategy (MTS)
A policy and expenditure planning process designed to optimise achievement of the Council's objectives within its available resources.
N
National Non-Domestic Rates (NNDR)
see Business Rates
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P
Public Service Agreement (PSA)
Local PSAs provide individual authorities with the opportunity to sign up to challenging targets to deliver key national and local priorities in return for operational flexibilities and incentives, with financial rewards for success.
R
Receiving Authorities
These are the 432 authorities that are eligible to receive Revenue Support Grant.
Reserves
Accumulated balances, most notably the Capital Reserve and County Fund. Some of these balances are "earmarked" to meet specific known future costs; the remainder are "general" reserves which can be used to fund additional expenditure requirements, as an alternative to the Council Tax.
Resource Equalisation
The way in which the formula grant distribution system takes account of councils' relative ability to raise council tax.
Revenue Expenditure
Expenditure financed by grants, council tax and use of reserves.
Revenue Support Grant (RSG)
A Government grant to make up the shortfall between a local authority's Formula Spending Share and the amount it would receive from Assumed National Council Tax and redistributed business rates.
Ring-Fenced Grant
A grant paid to local authorities which has conditions attached to it which restrict the purposes for which it may be spent.
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Specific and Special Grants
Specific formula grants, targeted or ring-fenced grants are sometimes referred to as specific or special grants. A specific grant is paid under a specific legislative power, whereas a special grant uses a general power to pay grants to councils.
Specific Formula Grant
A grant which is distributed outside the formula grant distribution system but with no conditions attached as to how it is spent.
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T
Targeted Grant
A type of ring-fenced grant which has conditions attached which specify a broad outcome.
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V
Valuation Office
An Agency of the Inland Revenue, the responsibilities of which include property valuations and banding decisions in respect of the Council Tax. |