Guide to financial terms
Collection fund
Council Tax and National Non-Domestic Rates (NNDR) are collected
and paid into the Collection Fund. Payments of NNDR are made from
the fund to the National Business Rate Pool, and for council tax
directly to Cumbria County Council, Cumbria Police Authority,
parish councils in the borough and Allerdale Borough Council
Collection Fund surpluses
Amounts arising from higher than expected collection of council
tax and National Non-Domestic Rates.
Council tax
Allerdale Borough Council collects council tax on behalf of the
police, town and parish councils and Cumbria County Council. About
10% of your council tax comes to Allerdale Borough Council. So, if
your council tax is £1,000 a year, you only pay about £100 for the
services you receive from Allerdale Borough Council. How much you
pay is determined by the council tax band each property is given by
the independent Valuation Office. There is more
information about council tax on this website.
Gross expenditure
Expenditure before any income is deducted.
National Non-Domestic Rates (NNDR)
Business rates collected locally and redistributed nationally.
Business rates are paid by businesses towards the costs of local
services. How much each business pays is determined by the rateable
value set by the independent Valuation Office. Although Allerdale
Borough Council issues the bill and collects the business rates,
the total amount collected across the country goes into a central
rate pool managed by the Government, which redistributes the funds
to local authorities, and to other bodies like police and fire
authorities. There is more
information about business rates on this website.
Net
Net income means income after all expenses and deductions. Net
expenditure is expenditure less income.
Reserves
Money earmarked for particular projects and policy purposes.
Revenue Support Grant
Only some of the money Allerdale Borough Council receives comes
from council tax. Another source of funding is the Revenue Support
Grant, an amount of money given by central government to local
authorities each year.
Trading activities
Money left after expenses from trading estates operated by the
Council.