Financial enforcement

STOP PRESS: This content is under review to assess the impact of The Equality Act 2010 (Amendment) Regulations 2023, updated Equality Act guidance or other guidance. For further details, see New Analysis: Equality Act 2010 to be amended from 1 January 2024 to preserve EU rights, LNB News 18/12/2023 79 and LNB News 19/12/2023 93.

There are four main sources of income for a local authority:

  1. funding from central government grants

  2. council tax—for further reading, see Practice Note: Council tax

  3. retained business rates (national non-domestic rates NNDR)—for further reading, see Practice Note: National non-domestic rates—billing recovery, exemptions and reliefs

  4. reserves, fees and charges for services provided

The mechanism for recovery of revenue depends upon how the liability arises. It can be either statutory or contractual.

  1. statutory debt arises from specific revenue raising powers granted to all local authorities such as council tax or NNDR

  2. contractual debts arising either from the local authorities commercial or residential activities such as rent arrears and service charge arrears for both residential and commercial properties and those arising from charges agreed by the council

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