Town loses out on more cash to St Edmundsbury
Wednesday, 17th December 2014.
An 'error' by St Edmundsbury council has resulted in Haverhill losing out on cash again from council ta receipts.
The borough council's cabinet member for resources, David Ray, apologised to Haverhill people for the mistake at last night's meeting.
At the same time, Haverhill Town Council members, also meeting last night, were having the consequences of the error explained to them by town clerk Colin Poole.
In updating the council tax base for next year, St Edmundsbury had only accounted for 21 new homes being built in Haverhill over the year, whereas the correct number was 138.
The number has now been revised, but only as far as around 85, due to a change in the way the council averages out the amount it expects to actually collect.
Due to people defaulting on their council tax, there is never a 100 per cent collection rate. In the past the council had been estimating a percentage in the high 90s.
When they have fallen short of that, it is themselves who have had to take the hit because shares have already been dished out to Suffolk County Council, the police and the town and parish councils.
So now they are estimating much lower, resulting in a reduction in the tax rate, represented by the number of dwellings in each parish.
This means that if thy exceed their collection target - now much more likely - they can keep the extra themselves, because the other shares will already have been doled out.
The error which had resulted in Haverhill losing out on cash has now been corrected upwards but, when balanced with the effect of the new collection estimate, means Haverhill will not be any better off.
The situation compound the town council losing out on the council tax support grant from the Government, which St Edmundsbury decided to hang on to, and which led to the town council upping its precept to cover the shortfall.
Mr Poole told members it would be possible to freeze its precept this year, but at the bleakest estimate it could mean a rise of over four per cent next year.
The borough council's cabinet member for resources, David Ray, apologised to Haverhill people for the mistake at last night's meeting.
At the same time, Haverhill Town Council members, also meeting last night, were having the consequences of the error explained to them by town clerk Colin Poole.
In updating the council tax base for next year, St Edmundsbury had only accounted for 21 new homes being built in Haverhill over the year, whereas the correct number was 138.
The number has now been revised, but only as far as around 85, due to a change in the way the council averages out the amount it expects to actually collect.
Due to people defaulting on their council tax, there is never a 100 per cent collection rate. In the past the council had been estimating a percentage in the high 90s.
When they have fallen short of that, it is themselves who have had to take the hit because shares have already been dished out to Suffolk County Council, the police and the town and parish councils.
So now they are estimating much lower, resulting in a reduction in the tax rate, represented by the number of dwellings in each parish.
This means that if thy exceed their collection target - now much more likely - they can keep the extra themselves, because the other shares will already have been doled out.
The error which had resulted in Haverhill losing out on cash has now been corrected upwards but, when balanced with the effect of the new collection estimate, means Haverhill will not be any better off.
The situation compound the town council losing out on the council tax support grant from the Government, which St Edmundsbury decided to hang on to, and which led to the town council upping its precept to cover the shortfall.
Mr Poole told members it would be possible to freeze its precept this year, but at the bleakest estimate it could mean a rise of over four per cent next year.
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