I had a very informative meeting this morning with Tim Neill the new Head of Resource at Welwyn Hatfield District Council.
He seems keen on transparency and so we are working to better understand what our business rates are being spent on.
As you probably know there are plans to have 100% of business rates spent locally by 2017. This will go someway to increasing the influence of local businesses because as I understand only about 50% currently is.
Now make no mistake the current system is still horribly complicated and no doubt costs a fortune to administer, however this is how it works.
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We pay some £60 million in business rates in Welwyn and Hatfield
50% SHARE goes to Government
10% goes to Herts County council
There is then a further Government TARIFF of 33%
So we keep around 7% = £4 million
That 4 Million is further Adjusted for Baseline funding, the amount Central Government deems that we need to run the Council Services. See below.
A Further LEVY of 50% is then charged
Adjusted yet again
and we end up with about 7% again
And this is the other income
So Council Tax 28% of £27.5 million = £7.7 million
Business Rates 14% = £3.9 million
Fees and Charges 17% = £4.7 million This is Parking and Parking Fines