2015/16
Business rates
information booklet
(Including Business Improvement District Levy)
Incorporating business rate information for Luton Borough Council, Bedfordshire Fire and Rescue Service and Bedfordshire Police and Crime Commissioner
Luton Borough Council
www.luton.gov.uk email: revenuesNNDR@luton.gov.uk Tel: 0300 790 0349 Fax: 01582 546977 Text/minicom: 01582 414367 Phone lines open 9am-5pm weekdays (10am Wed) Visit us at:Customer Service Centre Town Hall
Upper George Street Luton Bedfordshire LU1 2BQ
Useful contacts
Business rates
Paying by phone 0300 456 2725 (open 24/7)Information about your business rates, discounts and exemptions
www.luton.gov.uk/businessrates email: revenuesNNDR@luton.gov.uk Tel: 0300 790 0349 (open 24/7)
Direct debit setup for
business rates
www.luton.gov.uk/businessrates Tel: 0300 790 0349 (open 24/7)
Valuation Office Agency
Business rates valuation and appealing them www.voa.gov.uk email: ratingcentral@voa.gsi.gov.uk Write to: Regent Court 14 - 17 George Road Edgbaston Birmingham B15 1NU Tel: 0300 050 1501 Fax: 0300 050 3132
Valuation Tribunal
If you have appealed to the Council about your bill and you disagree with our decision, you can appeal to this independent organisation
www.valuationtribunal.gov.uk email: vtdoncaster@vts.gsi.gov.uk Tel: 01302 342324
Fax: 01302 321447 Write to: Hepworth House 2 Trafford Court
This booklet explains how we work out your business rates and where the money goes. It also sets out easy ways to pay, as well as details of how you could qualify for a discount.
Information on the business rate charges for Bedfordshire Fire and Rescue Service and the Office of the Police and Crime Commissioner for Bedfordshire is also included.
This booklet is on our website to save the considerable cost of printing and delivery. You can easily download and print it if you need a hard copy. If you need further information from Luton Borough Council after reading this information, please contact us using the details at the front of this document.
Introduction
The banking system does not change standing order or bank transfer details automatically. So if you pay your business rates by standing order or bank transfer you will need to contact your bank and change your payment details to our new bank:
account name: Luton Borough Council – General Account
sort code: 30 66 76 account number: 17 25 68 62
If you fail to inform your bank, we will not receive your payment and will pursue you for the outstanding sum.
Important information if you pay
your business rates by standing
order or bank transfer
You can choose to receive your bills by email rather than through the post. This will save the Council money and improve our response to you. To sign up for this service please register at: www.luton.gov.uk/businessrates and click on ‘business rates self service’.
Paperless billing
Regular users of the Council’s website will know there are lots of ways to find information and get things done. We have now developed our online business rates self-service portal so you can view your account balance, sign up for direct debit and pay your bill from your computer, tablet or smartphone at www.luton.gov.uk/businessrates.
Sign up to self-service
Ways to pay your business rates
Direct debit
The easiest and most convenient way to pay. Switch to direct debit online at www.luton.gov.uk/counciltaxdd or call us on 0300 790 0349.
Bank transfer
Pay online through your own bank’s website. You will need to quote your business rate account number.Our bank account bank details are: Lloyds Bank sort code: 30 66 76 account number: 17 25 68 62
Online or telephone
Please visit our website www.luton.gov.uk/payonline or call our 24 hour payment line on 0300 456 2725 and follow the instructions.
Telephone banking
You need to sign up with your bank to pay your bills by this method. You can make payment 24 hours a day, 7 days a week simply by quoting our bank sort code: 30 66 76 account number 17 25 68 62.
Remember:
l ensure you have your business rate reference available when making
payments
l if you pay your business rates by cash or credit/debit card, your
instalments by default are due on the 1st of each month; you must ensure these payments are received on or before the due date. (See Business rates instalments for further information).
Payment kiosk
Pay by cash or debit/credit card at our payment kiosk located in the Customer Service Centre, Monday to Friday between 8.30am and 5.30pm. A receipt and change are provided. You will need to quote your business rate account number.
Post
Make your cheques payable to Luton Borough Council and don’t forget to write your business rate account number on the back and send to:
Revenues, Luton Borough Council, Town Hall, George Street, Luton LU1 2BQ
Note:
credit card payment is a discretionary service offered by the Council and a charge in line with our bank charges is made for payment by credit card. There is no charge for debit card payments.
It is vital you pay. If you fail to pay or pay late, you will lose your right to pay by instalments and have to pay the outstanding balance in full immediately. If you provide the Council with your mobile telephone number we can send you an SMS reminder if you miss a payment. This may help you to avoid costs as a result of recovery action including a court summons automatically triggered if you are late in paying your bill or referral to enforcement agents for collection on the Council’s behalf. Please let us know immediately if you are having difficulty paying your business rates. We may be able to offer advice and help: email us at revenuesNNDR@luton.gov.uk or call us on 0300 790 0349.
Non-domestic rates or business rates collected by local authorities are the way those who occupy non-domestic property contribute towards the cost of local services.
Under the business rates retention arrangements introduced from 1 April 2013, authorities keep a proportion of the business rates paid locally. This provides a direct financial incentive for authorities to work with local businesses to create a favourable local environment for growth since authorities will benefit from growth in business rates revenues. The money, together with revenue from council taxpayers, revenue support grant provided by Government and certain other sums, is used to pay for the services provided by your local authority and other local authorities in your area.
For more information about the business rates including transitional and other reliefs, please see www.gov.uk or www.luton.gov.uk/business.
About business rates
Apart from properties exempt from business rates, each non-domestic property has a rateable value set by the valuation officers of the Valuation Office Agency (VOA), an agency of Her Majesty’s Revenue and Customs. They draw up and maintain a full list of all rateable values, available at www.gov.uk/government/organisations/valuation-office-agency.
The rateable value of your property is shown on the front of your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date. For the revaluation that came into effect on 1 April 2010, this date was set as 1 April 2008. The valuation officer may alter the rateable value if circumstances change. The ratepayer (and certain others who have an interest in the property) can appeal against the value shown in the list if they believe it is wrong. The Government has announced there will be limits on the backdating of changes to rating assessments with effect from 1 April 2015. If the Valuation Office Agency receives your appeal on or after 1
Luton Borough Council can only backdate any business rates rebate to that same date. You will continue to have your full legal rights to appeal your rating assessment.
The Valuation Office Agency will continue to fulfil its legal obligations to alter rating assessments if new information comes to light indicating the valuation is inaccurate. Any alterations on or after 1 April 2016 can only be backdated to 1 April 2015.
Further information about the grounds on which appeals may be made and the process for doing so can be found at www.gov.uk or obtained from your local valuation office.
Please do not contact the Council to dispute your rateable value.
The local authority works out the business rates bill by multiplying the rateable value of the property by the appropriate multiplier. There are two multipliers: the standard non-domestic rating multiplier and the small business non-domestic rating multiplier. The former is higher to pay for small business rate relief. The Government sets the multipliers for each financial year for the whole of England according to formulae set by legislation.
Between revaluations, the multipliers generally change each year in line with the Retail Price Index in September of the previous year and take account of the cost of small business rate relief. The calculation of the multipliers has taken account of the Government’s decision in the Autumn Statement 2014 to cap the inflation increase to 2 per cent in 2015-16.
Current multipliers
The multipliers and standard/small business thresholds for 2015-16 are: 1. standard non-domestic rating multiplier: 0.493 used for businesses
with a rateable value of £18,000 or more
2. small business non-domestic rating multiplier: 0.48 used for businesses with a rateable value of £17,999 or less.
Note: the relevant multiplier will be automatically applied to your business rates without the need to apply.
Your bill will show the calculation the authority uses to determine your business rates based on the Rateable Value (RV) supplied by the VOA.
That calculation is the RV x multiplier x number of days you are held liable.
This will give the authority the base figure to which reliefs and discounts, where applicable, may be applied.
Your bill calculation
Business rates instalments
Payment of business rate bills is automatically set on a 10-monthly cycle. However, the Government has put in place regulations that allow businesses to require their local authority to enable payments to be made through 12 monthly instalments. If you wish to take up this offer, please contact us before 15th April 2015 on revenuesNNDR@luton.gov.uk.
By default instalments are due by the 1st of each month. However to help businesses the Council has introduced further instalment dates of 8th, 15th or 22nd of the month. To change your monthly instalment date for the year you must contact the Council in advance to agree the new date.
All rateable values are reassessed at a general revaluation to ensure bills paid by any one ratepayer reflect changes over time in the value of their property relative to others. This helps maintain fairness in the rating system by updating valuations in line with changes in the market. The current rating list is based on the 2010 revaluation. The Government has confirmed the next revaluation will take place in 2017 based on rental values at 1st April 2015. More information on revaluation 2017 can be found at: www.gov.uk/government/organisations/valuation-office-agency. In the year of revaluation the multipliers are rebased to account for overall changes to total rateable value and to ensure that the revaluation
does not raise extra money for Government. Similarly, the change in the revaluation date to 2017 has no effect on the total amount of revenue raised from business rates.
The Government announced in the Autumn Statement on 3rd December 2014 that it would extend transitional relief for small and medium properties, known as Extended Transitional Relief. Properties that will benefit are those with a rateable value up to and including £50,000 who would have received transitional relief in 2015/16 or 2016/17 had the existing transitional relief scheme continued in its current format. In line with the existing thresholds in the transitional relief scheme, the £50,000 rateable value threshold is based on the rateable value shown for 1/4/10 or the substituted day in the cases of splits and mergers. This relief will be applied automatically to your bill if you are a qualifying property.
Extension of transitional relief
Business rates will not be payable in the first three months a property is empty. This is extended to six months in the case of certain industrial properties. After this period rates are payable in full unless the
unoccupied property rate has been reduced by the Government by order. In most cases the unoccupied property rate is zero for properties owned by charities and community amateur sports clubs. In addition, there are a number of exemptions from the unoccupied property rate.
Full details on exemptions can be obtained from the website at
www.luton.gov.uk/business. If the unoccupied property rate for the financial year has been reduced by order, it will be shown on the front of the bill. The Government has introduced a temporary measure for unoccupied new builds from October 2013. Unoccupied new builds will be exempt from unoccupied property rates for up to 18 months (up to state aid limits) where the property comes on to the list between 1st October 2013 and 30th September 2016. The 18 month period includes the
What is occupied?
The term occupied may imply physical occupation by a person(s) this is not the case. For example premises or land may be deemed as occupied where used for a beneficial purpose, such as storage, holding stock or a parking space or land otherwise mainly considered unoccupied but used to get from one area to another.
Partly occupied property relief
A ratepayer is liable for the full non-domestic rate whether a property is wholly occupied or only partly occupied. Where a property is partly occupied for a short time, the local authority has discretion in certain cases to award relief in respect of the unoccupied part.
Where part of a property is likely to remain unoccupied for a long time An example of this may be where a company no longer needs all
the space it rents and intends to give up part of it when the tenancy agreement comes up for renewal.
The ratepayer can ask the Valuation Office Agency - Appeals to split the rating assessment, creating two separate assessments: one for the occupied part and another for the unoccupied part. The local authority then bills each part as a separate property.
Split assessments
If the Valuation Office Agency agrees to split the assessment, it will value the parts based on the rent each would attract if let separately.
The total of the rateable values for the two new assessments may not be the same as the single rateable value of the old assessment.
When the relief period runs out on the unoccupied part, the rates payable may be more, or less, for the two assessments than they were for the single assessment.
Where part of a property is unoccupied for a short time
An example of this is when a company phases its move from one property to another.
initial 3 or 6 month exemption and so properties may, if unoccupied, be exempt from non-domestic rates for up to an extra 15 or 12 months.
As the situation is only temporary, it may not be appropriate to split the assessment. In these circumstances, the ratepayer may ask us to allow relief on the unoccupied part.
If we decide to allow short-term relief, we will ask the Valuation Office Agency to issue a certificate telling us the values for each part.
To apply for this short-term relief, you should write to us as soon as the property becomes partly occupied.
Your application should include:
l the reason why the property is partly occupied l the date on which it became partly occupied
l your estimate of when you expect it to become fully occupied or
completely unoccupied
l a plan of the property, clearly showing the occupied and unoccupied
parts. This does not need to be a professionally produced plan, but it does need to be accurate enough for us, and the Valuation Office Agency, to understand the layout of the property and which parts are occupied and which parts are not.
When we receive your application, we will arrange for our inspector to visit the property to verify what you have said, after which we will consider if we can use our discretion to award short-term relief.
If we decide to allow relief, we will apply to the Valuation Office Agency for the necessary certificate. If the split between the occupied and unoccupied parts of the property are not clearly defined, the Valuation Office may need to visit the property to take measurements.
We may visit the property regularly to check if circumstances have changed since the certificate was issued.
For a copy of our policy framework on part occupied relief please see www.luton.gov.uk/businessrates.
Ratepayers not entitled to another mandatory relief or liable for unoccupied property rates and occupying a property with a rateable value which does not exceed £17,999 will have their bill calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier.
In addition, generally, if the sole or main property is shown on the rating list with a rateable value which does not exceed £12,000, the ratepayer will receive a percentage reduction in their rates bill for this property of up to a maximum of 50 per cent for a property with a rateable value of not more than £6,000. However, until 31 March 2016, the Government has doubled the usual level of relief. This means you will not pay business rates on a single occupied property with a rateable value of £6,000 or less. The rate of relief then gradually decreases from 100 per cent to 0 per cent for properties with a rateable value between £6,001 and £12,000.
Generally, this percentage reduction (relief) is only available to ratepayers who occupy either:
(a) one property, or
(b) one main property and other additional properties providing those additional properties each have a rateable value which does not exceed £2,599.
The rateable value of the property mentioned in (a), or the aggregate rateable value of all the properties mentioned in (b), must not exceed £17,999 outside London or £25,499 in London on each day for
which relief is sought. If the rateable value, or aggregate rateable value, increases above those levels, relief will cease from the day of the increase.
An application for Small Business Rate Relief is not
normally required
Where a ratepayer meets the eligibility criteria and has not received the relief, please contact the local authority. Provided the ratepayer continues to satisfy the conditions for relief which apply at the relevant time as regards the property and the ratepayer, they will automatically
continue to receive relief in each new valuation period. We need you to complete a form where your business rates are £12,000 or less - please see the business rates section of the website for more information on how to apply.
Certain changes in circumstances will need to be notified to the local authority by a ratepayer in receipt of relief (other changes will be picked up by the local authority). The changes which should be notified are: (a) the ratepayer taking up occupation of an additional property (b) an increase in the rateable value of a property occupied by the
ratepayer in an area other than the area of the local authority which granted the relief.
Charities and registered community amateur sports clubs are entitled to 80 per cent relief where the property is occupied by the charity or the club, and wholly or mainly used for the charitable purposes of the charity (or of that and other charities), or for the purposes of the club (or of that and other clubs).
For charity shops, the charity must use the property wholly or mainly to sell goods donated to it. It must also use the net proceeds for the purposes of the charity.
About charities
A charity is an organisation established for charitable purposes. To have charitable status usually means you are included in the Charity Commissioner's register of charities. There are some charities that do not need to register, known as 'excepted charities', including organisations such as:
l The Church Commissioners
l some Scout Association and Guide Association units l voluntary schools.
If you are not in the register of charities or an 'excepted charity', we can still treat you as a charity if you have a letter from HM Revenue and Customs stating that, for tax purposes, you are treated as a charity.
Mandatory rate relief for Community Amateur Sports Clubs
We treat sports clubs, which have registered for Community Amateur Sports Club (CASC) status with Her Majesty's Revenue and Customs, in a similar way to registered charities and will give them 80 per cent mandatory relief if:
l the club is the rate payer, and
l the club uses the property wholly, or mainly, for purposes of the club
or other registered clubs.
If the property is unoccupied, the intention must be to use it for the club or other registered clubs.
To apply for mandatory charitable rate relief please supply your charity registration number (or a letter from HM Revenue and Customs stating that for tax purposes you are treated as a charity) and the property address and account number if available via email to:
revenuesNNDR@luton.gov.uk.
Local discounts
Local authorities have a general power to grant discretionary local discounts and the following local discounts apply in Luton … Discretionary rate relief
Any organisation that qualifies for 80 per cent mandatory rate relief may also apply for discretionary relief for all or part of the remaining 20 per cent of its bill.
If an organisation is not a charity but has been set up for religious, social welfare, artistic, educational or recreational purposes, and is not run to make a profit, we can grant up to 100 per cent discretionary rate relief.
To apply for relief for the 2015/2016 financial year please complete the discretionary rate relief online form.
Please note there are limited funds available. There is no guarantee your application will be successful in 2015/16 as funds are allocated to organisations in the order applications are received until funding is spent. More applications than funding were received in 2014/15, so please apply early to avoid disappointment.
Business Growth Incentive Scheme
Deciding to base your business in Luton gives you a number of benefits one of which is the Business Growth Incentive Scheme.
If you are moving into a new build, extending your current premise or moving into a property currently receiving empty property relief, this relief may be available to you. By locating your business in Luton, you may be able to claim up to 45 per cent of the net rates yield increase in your first year. For more information please see www.luton.gov.uk/ business
Hardship relief
The local authority, at our discretion, gives businesses relief from business rates if they are experiencing hardship.
We can give help where:
l we are satisfied you would sustain hardship if we did not do so, and l it is in the interests of local council tax payers.
For details on how to apply please see: www.luton.gov.uk/business
Retail discounts
The Government is giving funding to local authorities so they can provide a discount worth up to £1,000 in 2014-15 and up to £1,500 in 2015-16 to retail premises with a rateable value of up to £50,000. This will provide support to premises including pubs, cafes, restaurants and shops.
The Government is also giving funding to local authorities so that they can provide a 50 per cent discount for 18 months for those businesses that move into retail premises that have been empty for a year or more. This is available for businesses which move into empty premises between 1st April 2014 and 31st March 2016. Full details can be obtained from the local authority.
Where a business can qualify for both the 50 per cent relief and
discount of £1500, the Local Authority will apply the 50 per cent relief first then apply any discount up to £1500.
These reliefs will be applied automatically to qualifying businesses without the need to apply.
State Aid
The award of such discounts is considered likely to amount to state aid. However it will be state aid compliant where it is provided in accordance with the De Minimis Regulations EC 1407/2013. The De Minimis
Regulations allow an undertaking to receive up to €200,000 de minimis aid over a rolling three year period.
If you are receiving or have received any de minimis aid granted during the current or two previous financial years (from any source), you should inform the local authority immediately with details of the aid received.
Rating advisers
Ratepayers do not have to be represented in discussions about their rateable value or their rates bill. Appeals against rateable values can be made free of charge.
However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors (RICS - www.rics.org) and the Institute of Revenues, Rating and Valuation (IRRV - www.irrv.org.uk) are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct. Before you employ a rating adviser, please check they have the necessary knowledge and expertise, plus appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering into any contract.
Information supplied with demand notices
Information relating to the relevant and previous financial years in regard to the gross expenditure of the local authority is available in this booklet. Find out more about business rates including how to pay at
www.luton.gov.uk/business.
Please visit our website www.luton.gov.uk and input ‘food’ in search for useful information regarding setting up and running a food premises.
Please remember to tell us if you move or extend your business. You can either complete the online form or email us at:
revenuesNNDR@luton.gov.uk, or call us on 0300 790 0349. Let us know immediately about any changes in your circumstances, particularly if you are claiming any discount or exemption.
You must also tell us if you have been given a discount to
which you are not entitled.
We rely on accurate information from business rate payers to make the system work.
Moving or extending your business property
The Luton Business Improvement District (BID) was voted through by businesses in October 2014 with a strong turnout and a vote in favour of 75 per cent of businesses by number and 66 per cent by aggregate rateable value giving a clear mandate for the next five years from 1 January 2015.
The BID investment programme will be delivered through the four key strategic objectives and their related activities identified in the business plan which you can see and download at www.lutonbid.org. These will be delivered by the BID through its collective voice and influence, working closely with all businesses across the town centre, the local authority and other organisations and agencies.
If you would like to know more or get involved in the management group or any of the working groups that help steer the projects, please contact Georgina on 01582 412636 or email: info@lutonbid.org.
The Vision
Through this business-led programme of investment, the vision is: ‘To develop an energetic and entrepreneurial business community that is ambitious, innovative and always resourceful which connects, inspires and strengthens the business sector and creates cohesion, a vibrant town centre, a great visitor experience and a sense of pride in our town.’
Expenditure for the first three months is estimated based on the set up requirements and priorities identified at this stage by the board. Planned budget figures are based on three month pro-rata figures of the first full year of the BID Business Plan.
Financial expenditure January to March 2015
In late March/early April all businesses and organisations from across the BID area will be invited to join working groups and the management group to help identify activities they would like to see delivered in the coming year. These activities will be based on the objectives in the businesses plan as follows:
Objective 1 – Promotion - £580,000 over five years
Identify, develop and promote the strengths, characteristics and the business offer of Luton town centre to positively change perceptions of the town, locally, regionally and nationally.
BID budget for 2015- 2016
Income Planned Budget Actual (estimated)
BID Levy Revenue £112,760 £102,000
Other Income £12,500
-Total Income £125,000 £102,000
Expenditure Planned Budget Actual (estimated) Objective 1 – Promotion £29,451 £23,528 Objective 2 – Environment £23,561 £18,823 Objective 3 – Experience £37,751 £30,159 Objective 4 – Business Working Together £15,258 £12,189 Central Management Costs £9,639 £7,700
Levy Collection Costs £4,500 £4,500
Contingency £5,100 £5,100
Total Expenditure £125,260 £102,000
Activities
l A ‘brand’ which reflects the strengths and characteristics of Luton
town centre.
l Business collaboration and joint working relationships for new
products and services.
l Campaigns for professional service businesses to raise their profile
locally and regionally.
l Promote the development and diversity of the culture and leisure offer
in Luton town centre, annual campaigns focusing on key retail and leisure trading periods.
l Campaigns and initiatives to promote the retail and leisure and create
customer loyalty.
l Effective communications between businesses to promote awareness
of issues and opportunities which affect trading conditions.
l Communicating the brand, events, offers and business opportunities
for visitors and businesses alike.
Objective 2 – Environment - £463,000 over five years
To ensure the town centre and its different areas present an accessible and appealing environment which attracts business investment,
encourages visitors to stay longer and fosters a pride in the town. Activities
l Additional cleaning services to portray a ‘gold’ standard for the town
centre every day.
l Protect and enhance the buildings and other physical attributes of
Luton town centre.
l Improve the appearance of vacant premises or derelict plots of land. l Improve management of streets and open spaces to improve the
attractiveness.
l Additional floral displays and festive and creative lighting.
Objective 3 – Experience - £743,000 over five years
To provide a safe, attractive and appealing experience for visitors and workers in Luton town centre to enjoy.
Activities
Uniformed rangers on the streets to:
l work with the police in tackling antisocial behaviour and crime issues l help promote the area, welcome visitors and support events
l support businesses in tackling and communicating issues
l develop one effective and inclusive Business Crime Reduction scheme
for both the evening and day time businesses
l tackle antisocial behaviour, street drinking and begging on the streets l create a diverse town centre evening and night time leisure offer which
appeals to people from all ages and backgrounds
l develop and organise events which builds the reputation of Luton as
a great place to be entertained, benefits local businesses and attracts more visitors and extends the length of stay of visitors to the town centre
Objective 4 - Businesses working together - £300,000
over five years
To build on the strengths of the businesses in Luton town centre, to support and promote growth, development, investment and a sense of businesses community.
Activities
l A coherent approach to the use of properties and sites in Luton town
centre.
l Development of skills for businesses.
l New businesses and investment in the town centre. l Reduction of business overheads.
l Monitor footfall, commercial performance and customer perceptions
Council tax budget 2015/16
A B C D E F G H A with disability reliefProperty
band Capital values (£)as at 1 Apr 1991 propertiesNo. of Council tax (£)
0 to 40,000 13 841.08 0 to 40,000 16,533 1,009.30 40,001 to 52,000 25,751 1,177.51 52,001 to 68,000 21,507 1,345.74 68,001 to 88,000 7,528 1,513.95 88,001 to 120,000 3,340 1,850.39 120,001 to 160,000 1,035 2,186.81 160,001 to 320,000 255 2,523.25 over 320,000 21 3,027.90 Total: 75,983 Tax base band D equivalents: 46,635
Expenditure and income
For many years, Luton Borough Council has kept its tax the lowest in Bedfordshire and the tax rate remains below the average of other unitary councils. It has kept costs down with a range of money-saving and income-generating ideas.
(44,455 2014/15)
For 2015/16 the Council has been able to set a balanced budget while continuing to protect vital services. £8.7 million of growth has been prioritised into key services which include £5.2 million for adults and older person’s social care and £1.3 million for children’s education and family support.
Council tax budget 2015/16
Loan debt: it is estimated that loan debt at 31 March 2015 will be £295.4 million (£293.2 million at 31 March 2014)
£million
Growth – unavoidable increased spend on services 8.7 Price inflation and employee costs 2.6 Contributions to reserves to meet future pressures 0.7 Revenue effect of capital programme 1.8 Reduced contingency and reorganisation costs -0.2 Social care funding to support increased costs -3.2 Reductions in expenditure and increases in income -14.3 required to balance the budget with available resources
Net change in spend -3.9
The Council has made more budget reductions through savings and increased income on top of those made in the previous year in order to balance its 2015/16 budget.
In the 2014/15 budget, savings totalled £18.2million and for 2015/16 there is a further £14.3 million. For 2014/15 the total is a further £18.2 million. Savings have been sought in every area of the Council's activities and extensive consultation has taken place on many savings proposals. Over 90 per cent of the budget reductions are not expected to impact on current service levels but it has not been possible to shield all public facing services from savings.
Savings and increased income
Expenditure reductions have been found across a wide range of services as shown below.
43 per cent of the Council’s overall budget is for education and children’s services, 26 per cent is for housing and 14 per cent for adult social care. The major changes in net spending this year compared to 2014/15 are outlined in the table below
Budget expenditure and income 2015/16
Gross cost of services 517,694 509,058
Less income -379,790 -366,644
Net cost of services 137,904 142,414
Contingencies 3,156 3,368
Appropriation to/from 2,732 1,973
earmarked reserve
Total net expenditure 143,792 3,083.33 147,755 3,323.68
Contribution to/from(-) -5,171 -110.87 -697 -15.67
collection fund
Revenue Support Grant -37,352 -800.94 -52,127 -1,172.58
Collection Fund Business -32,533 -679.60 -29,923 -673.11
Rates
Business Rates Top Up -10,751 -230.54 -10,550 -237.32
Luton Borough Council 57,985 1,243.38 54,458 1,225.00 Bedfordshire Police 8,457 181.35 6,959 156.55 Authority precept
Beds Fire Authority 4,160 89.22 3,889 87.48 precept
Council tax 1,513.95 1,469.03
2015/16 2014/15
Expenditure
£000 per band D property £
Expenditure
£000 per band D property
Balances and reserves 2015/16
Reserves provide a general working balance for the general fund and housing revenue account. They are also used to pay for future capital projects and to provide for any fluctuations in income from grants, rents and charges.
General fund £m £m £m
General 9.6 11.6 14.0
Specific risk management 3.0 3.0 3.0 Butterfield profit share 0.7 0.9 0.9
Invest to save 3.5 3.5 3.7
Planning 0.2 0.2 0.2
Welfare reform and
recession reserve 1.6 1.5 1.4 Reorganisation 5.6 5.6 4.8 Service provision 4.8 1.1 1.0 Pensions reserve 3.0 3.0 3.0 Major projects 15.0 8.4 8.4 Public health 0.6 0.2 0.2 Investment 2.2 2.1 0.6 Insurance 2.1 1.8 1.8
Housing revenue account
General 10.2 3.3 1.4
Capital 1.2 0.3 1.1
Actual
Where the money goes 2015/16
Education and 232.64 242.70
children’s services
Housing services 143.31 140.01
Adult social care 74.32 70.09
Cultural, 34.43 33.45
environment
and planning services
Highways, roads and 23.41 26.20
transport services Public health 15.56 13.22 Central services 15.26 12.78 Other costs 5.89 5.34 Service expenditure 544.82 543.89 Capital financing -21.24 -29.39 TOTAL 523.58 514.50 Service expenditure2015/16 £m 2014/15 expenditure £m Note:
Gross expenditure on services for 2015/16 is budgeted at £9m more than 2014/15, reflecting increases in the budgets for schools, adult social care, public health and housing services. Core grant support from Government has reduced again in 2015/16, but the Council is continuing to lessen the effect of this on public facing services by developing
alternative sources of income.
43% 26% 14% 6% 4% 3% 3% 1%
Capital expenditure 2015/16
2015/16 expenditure £m Service Highways 15.17 Investment in schools 15.00 Housing (public sector) 28.95Investment in public buildings 8.60
Housing (private sector) 2.05 Vehicles and plant 5.49
Social services 4.20 Other 2.92 TOTAL 82.38 2015/16 expenditure £m Service
Supported expenditure - capital grant 19.55
Prudential borrowing 29.95
Major repairs allowance 9.47
Internal funds 8.18
Contributions 4.99
Usable capital receipts 10.24
TOTAL 82.38
Capital financing 2015/16
18% 18% 35% 10% 3% 7% 5% 4% 24% 36% 12% 10% 6% 12%
Foreword by Councillor Colleen Atkins MBE, Chair of Bedfordshire Fire and Rescue Authority and Paul Fuller, Chief Fire Officer.
In 2015/16, the Fire and Rescue Authority aims to continue to provide an excellent response service to fires, road traffic collisions and other emergencies, whilst also striving to reduce the number and severity of such incidents.
We have prepared a Community Risk Management Plan (CRMP), which shows how the Fire and Rescue Authority will achieve this, by
understanding community risks, highlighting how we respond to the full range of emergencies we are called to, and how our prevention and protection activities are targeted to reduce the risks facing our communities.
Last year, Bedfordshire Fire and Rescue Service attended around 5,550 emergency incidents including: over 2,000 house fires; 371 road traffic collisions; 109 flooding incidents; and 1,117 special incidents which includes animal rescues, aircraft, and railway incidents.
Our wide range of prevention activities includes: providing free home fire safety checks and smoke detectors; road safety and home safety education campaigns; and working closely with children and adults of all ages, abilities and cultures.
Operational crews and specialist fire safety inspecting officers provide guidance to owners and occupiers of commercial and public buildings, to help them fulfil their legal fire safety responsibilities.
In common with all public services, the current economic downturn will require us to make some difficult decisions toachieve significant savings over this and future years. We are confident our careful planning will help us meet those challenges, whilst maintaining high quality services.
Our fire fighters rescued 60 people from fires and extricated 99 from road traffic collisions, with a further 68 extricated or released from other special service incidents.
For 2015/16, the Fire and Rescue Authority has increased its Band D Council Tax requirement by about 3 pence per week.
In conjunction with our programme of efficiency savings, this small increase will help ensure we can continue to meet the needs of our communities whilst delivering the necessary reductions in overall costs. This means your Fire and Rescue Service is provided for a Council Tax amount of just 24 pence per day for a Band D household, which we believe continues to represent excellent value for money.
Paul M Fuller QFSM MSc BSc FIFire MinstLM Chief Fire Officer, Bedfordshire Fire and Rescue Service
Councillor Colleen Atkins MBE, Chair of the Bedfordshire Fire and Rescue Authority
Revenue Budget
-This has been achieved despite the impact of a 9 per cent reduction in Government grant (compared to 2014/15) totalling £1.079m, and the effect of inflation which has increased our costs this year by £0.421m.
Capital Budget
Our capital programme highlights spending on assets such as our fire stations and fire engines. Each year the Authority draws up a rolling four year programme of capital projects. The capital projects for this year totals £1.519m and these are being funded from Government grants and contributions from the revenue budget.
Projects for this year include:
Investment in our vehicle fleet, to maintain effective, economic and efficient fire engines and appliances
Investment in IT
Investment in the modernisation of our buildings
Investing in vital operational equipment such as defibrillators and thermal imaging cameras.
Efficiency Savings
An efficiency saving occurs when the cost of an activity is reduced but its quality and effectiveness remains the same or improves. The Fire and Rescue Authority continues to focus on finding new ways to deliver the highest quality services at lowest possible cost.
Our revenue budget sets out the money necessary for the day to day running of the service. Through our on-going programme of efficiency savings we have managed to minimise the increase in our revenue budget requirement for this year compared to last year. Our efficiency measures have allowed us to continue with key service improvements whilst restricting the increase in this year’s Council Tax to 1.99 per cent (equivalent to an increase of just 3 pence per week for a Band D household).
In 2010, the Government announced reductions in central grant funding for fire and rescue authorities over the four years 2011/12 to 2014/15 that equated to a 25 per cent reduction, nationally, on 2010/11 levels. There has been a further reduction of 9 per cent for 2015/16. In developed a comprehensive efficiency savings plan.
Some of the key areas where the Authority is achieving its planned efficiency savings include:
Savings in managerial and support staff costs through shared service arrangements, organisational restructure and
improvements to working systems
Savings in temporary appointments through improved vacancy management
Savings in property leasing costs through creation of additional office capacity at other sites
Savings in fire safety advertising and promotion costs through improved targeting of campaigns at higher risk groups
Savings in the Service Vehicle Replacement Programme through improved asset management and maintenance.
Audit Judgement on Value for Money
In the 2014 Annual External Audit Letter from Ernst & Young, the Fire and Rescue Authority was awarded an ‘unqualified conclusion’, meaning that we were judged to have satisfactory arrangements in place in all areas.
Total achieved and planned savings and efficiencies between 2010/11 and 2014/15 total £3.5m, with a further savings and efficiencies of £1.7m by 2018/19.
order to meet the local impact of this whilst continuing to improve services and minimise Council Tax rises, the Fire and Rescue Authority has
Employees 78% Agency and Contracted Services 2% Transport 3% Supplies and Services 8% Premises 3% Capital Financing 6% Income 2% Central and Local Government Funding 38% Council Tax Freeze Grant 1% Council Tax 59% Financial Charts
Where the money comes from:
The Band D Council Tax for 2015/16 will be £89.22
The Fire and Rescue Authority has agreed a budget requirement of £28.9 million for 2015/16 2015/16 2014/15 (£m) (£m) Gross Budget 29.5 29.2 Income -0.6 -0.6 Budget Requirement 28.9 28.6 11.2 11.7 Central and Local
Government Funding
Council Tax Freeze
Grant 0.4 0.4
Council Tax 17.3 16.5
28.9 28.6
What the money is spent on: 2015/16 2014/15 (£m) (£m) Employees 22.1 22.5 Premises 1.0 1.0 Transport 0.7 0.7 Supplies and Services 2.4 2.1 Agency and Contracted
Services 0.4 0.5 Capital Financing 2.2 1.8 28.8 28.6 Reserves Funding 0.1 0 Budget Requirement 28.9 28.6
If you would like a printed copy of this leaflet please contact Sharon Webster on 01234 845180 or email Sharon.webster@bedsfire.com
Bedfordshire Fire and Rescue Service Southfields Road Kempston Bedford MK42 7NR Tel 01234 845000 www.bedsfire.com V7 24/2/15
What it will cost Band 2014/15 2015/16 +15.8% +15.8% Difference A 104.37 120.90 16.53 B 121.76 141.05 19.29 C 139.16 161.20 22.04 D 156.55 181.35 24.80 E 191.34 221.65 30.31 F 226.13 261.95 35.82 G 260.92 302.25 41.33 H 313.10 362.70 49.60 The increase will come into effect in April 2015, although the Referendum will not take place until General Election day on 7 May 2015. It is important that you are aware that you are being asked whether you support the increase that was introduced in April and not another increase following the vote.
Getting in touch and finding out more
If you have any further questions about this you can contact me in the following ways:
Write to:
Commissioner Olly Martins, Office of the Police and Crime Commissioner for Bedfordshire, Bridgebury House, Woburn Road, Kempston, Bedfordshire MK43 9AX
Email: pcc@bedfordshire.pnn.police.uk
Tel: 01234 842066 Twitter: @BedsPCC
www.bedspcc.org
Building a Safer
Bedfordshire
15_0043
*NB: This council tax increase is classified as “excessive” according to Government regulations. A referendum will therefore be held in accordance with the Local Government and Finance Act of 1992. This referendum will be held on the same day as the other elections this year, Thursday 7 May 2015. Additional information regarding the referendum will be provided in due course.
Building a Safer
Bedfordshire
COUNCIL TAX
FOR POLICING
Policing costs
This year Police and Crime Commissioner Olly Martins has set a budget of £104.606m for 2015/16 compared increase in the amount of council tax paid towards policing (the Police Precept) of 15.8 per cent compared to 2014/15 which means that a Band D property will rise by £24.80 a year, or 48p a week – making a total of £181.35 per annum. Of the total police budget 66 per cent will come from the government and the remaining 34 per cent via the local council tax. Because the Police Precept rise is higher than 2 per cent it has to be approved in a referendum.* BE DF OR DS HI RE POL ICE & CR
IME COMMISSIONER COUNC
IL TAX R EF ER EN DU M THURSDAY 7 MAY 2015
D E C ISIO
N
IT’S
The 15.8 per cent increase will raise around £4.5m which will be used to fund 100 additional police officers. This will mean that warranted officers can be put back into Neighbourhood Policing Teams in each part of the County. The majority of Police Constables were removed from local teams in 2012.
• • •
• 25 more will be trained as specialists to tackle cyber-crime and child-sexual exploitation What your money will be used for
What it will cost Band 2014/15 2015/16 +15.8% +15.8% Difference A 104.37 120.90 16.53 B 121.76 141.05 19.29 C 139.16 161.20 22.04 D 156.55 181.35 24.80 E 191.34 221.65 30.31 F 226.13 261.95 35.82 G 260.92 302.25 41.33 H 313.10 362.70 49.60 The increase will come into effect in April 2015, although the Referendum will not take place until General Election day on 7 May 2015. It is important that you are aware that you are being asked whether you support the increase that was introduced in April and not another increase following the vote.
Getting in touch and finding out more
If you have any further questions about this you can contact me in the following ways:
Write to:
Commissioner Olly Martins, Office of the Police and Crime Commissioner for Bedfordshire, Bridgebury House, Woburn Road, Kempston, Bedfordshire MK43 9AX
Email: pcc@bedfordshire.pnn.police.uk
Tel: 01234 842066 Twitter: @BedsPCC
www.bedspcc.org
Building a Safer
Bedfordshire
15_0043
*NB: This council tax increase is classified as “excessive” according to Government regulations. A referendum will therefore be held in accordance with the Local Government and Finance Act of 1992. This referendum will be held on the same day as the other elections this year, Thursday 7 May 2015. Additional information regarding the referendum will be provided in due course.
RINGMASTER
COMMUNITY MESSAGING SYSTEMStay alert with Ringmaster
Ringmaster provides accurate information about crimes in your area direct to your telephone or email address and over 17,000 local residents have already signed up.Ringmaster is a Community Messaging Service, providing information about different types of crime, from local crime patterns, business crime, rural crime, faith related crime, equine crime and retail crime.
The service is free to everyone.
You don’t need to be involved in Neighbourhood Watch or one of the other Groups to join Ringmaster.
You can select the type of information that is most relevant to you and you can choose how you wish to receive it – email, online, or text message.
You can join Ringmaster online at www.bedspcc.org
Alternatively you can phone 01234 275165 and an application form can be sent through the post.
Supporting you through tough times
We can’t stop the tough times. But as a Council we are committed to providing you with local quality services delivering value for money. Don’t bury your head in the sand if you are in financial difficulty. Contact us as early as possible. We can advise you of any discounts or benefits to which you may be entitled. In special circumstances, we may be able to offer you a revised payment plan. You can also get specialist money advice from outside organisations.Luton Citizens’ Advice Bureau Provides a range of advice services including how to cope with your debt problems.
24-26 King Street Luton LU1 2DP Tel: 0844 245 1285 www.adviceguide.org.uk Consumer Credit Counselling Service
Tel: 0800 138 111 www.cccs.co.uk
The UK Insolvency Helpline Debt Advice Service
Tel: 0800 074 6918
www.insolvencyhelpline.co.uk Luton Rights
15 New Bedford Road Luton LU1 1SA
Tel: 01582 453372 www.lutonrights.org
Luton Law Centre 6th Floor, Cresta House Alma Street Luton LU1 2PL Tel: 01582 481000 email: admin@lutonlawcentre.org.uk www.lawcentres.org.uk National Debtline Tel: 0808 808 4000 www.nationaldebtline.co.uk Bankruptcy line Tel: 0800 074 6918 Bankruptcy-Insolvency.co.uk
