Friday, 31 January 2014

Freeze grant and Camden

The 2011/12 freeze grant of £2.5m (2.5%) was permanent and has since been in base funding.

The 2012/13 freeze grant of 2.5% was temporary and only received in that year.
The 2013/14 freeze grant was for 1% of the base adjusted to remove the deflationary effects of the CTRS (i.e. based on the same base calculation as the previous two years). 

Though worth 1% (£1m) this grant was to be paid in both 2013/14 and 2014/15. The Finance settlement confirmed that the 2014/15 element will be added to Revenue Support Grant and therefore becomes ‘permanent’ (though will be subject to RSG cuts in future years).

In 2014/15 there is a new 1% grant based on the same adjusted base as the 2013/14 grant. This will also be added to base funding in the second year (2015/16) and is therefore ‘permanent’ (though as above subject to RSG cuts once rolled-in).

The Finance Settlement also announced another 1% freeze grant for 2015/16 that again would be included into the base for eligible councils in future years (i.e. from 2016/17).
So effectively because we froze Council Tax - in 2014/15 Camden will be receiving: 
  • 2011/12 freeze grant (£2.5m); 
  • second year 2013/14 freeze grant (which is now permanent) of £1m; 
  • and £1m first year 2014/15 freeze grant.

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