Members received a report which provided information on the levels of funding to parish councils by the Borough Council. Attention was drawn to the supplementary agenda which contained a recommendation from the Finance, Audit & Performance Committee that the New Homes Bonus allocation to parish councils be withdrawn with effect from 2015/16.
Several Councillors expressed concern regarding the removal of funding to already struggling parishes. It was highlighted that the forwarding of New Homes Bonus monies to parishes was discretionary and that HBBC was the only authority in Leicestershire who did this and it had been made clear from the outset that it was never intended to be relied upon by parishes.
The provision of Council Tax Support to parishes was discussed, and it was agreed that there was currently no intention to remove this, and it would only be removed as a last resort.
It was moved by Councillor Lynch, seconded by Councillor Bray and by majority
RESOLVED –
(i) The significant level of discretionary support provided to parish councils and the Special Expenses Area to date be noted;
(ii) In light of the requirement contained in the Medium Term Financial Strategy to consider removal of the New Homes Bonus in order to ensure minimum general fund balance levels from 2015/16 onwards, the ending of all payments of New Homes Bonus to parish councils and the special expenses area from 2015/16 be approved;
(iii) The ongoing provision of Council Tax Support funding to parish councils be approved.
Council was informed of the results of the consultation exercise in relation to the New Homes Bonus (NHB) and process for allocation of funds. Members welcomed the recommendation to transfer 25% of the total annual allocation to relevant parish councils, and it was noted that HBBC was the only district in Leicestershire which was taking such a step at this point.
On the motion of Mr Lynch, seconded by Mr Crooks, it was
RESOLVED – the report be endorsed and the following recommendations be agreed:
(i) only those parishes subject to new homes development will receive NHB;
(ii) the mechanism for calculating NHB be the number of new council tax accounts initiated in the previous 12 months;
(iii) 25% of the annual allocation to the Borough Council be transferred to the relevant parish councils;
(iv) funds be allocated to the relevant parish council (with ‘no strings’);
(v) funds be rolled over year on year if necessary;
(vi) an annual report be presented by both the Borough Council and parish councils detailing how NHB has been spent;
(vii) the allocation of 2010/11 NHB be undertaken as set out in paragraph 5.2 of the report.