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How your council tax is calculated and how it is spent
Council tax is made up of three parts. The following shows the figures for band D.
|2015/16 £||2016/17 £||Increase/
|Net spending on Merton’s local services||1,088.96||1,089.25||0.00%|
|Spending on levies||13.29||13.00||(2.20%)|
The table below shows the main sources which provide the money we plan to spend on services in 2016/2017.
|Revenue support grant||23,157||16.70%||108.61|
|Council tax requirement||78,920||56.90%||370.17|
* based on estimated population of 213,200 in 2016 (source: ONS)
Under the localism arrangements and following the introduction of the business rates retention scheme, business rates are shared 50% to central government, 30% to the council and 20% to the Greater London Authority (GLA). In addition, Government Revenue Support Grant is allocated using information on the population, social structure and other demographic characteristics of the authority. Income raised from the council tax is used to fund the balance of expenditure.
Merton’s Medium Term Financial Strategy sets out details for the next four years.
Merton uses the funds that are raised from Government, businesses and the council tax to finance the costs of services we provide. The amounts we plan to spend on these services in 2016/17 (excluding schools, which are funded by Dedicated Schools Grant), together with comparative information for 2015/2016, is shown below.
|Gross expenditure £000s||Income £000s||Net expenditure £000s||Gross expenditure £000s||Income £000s||Net expenditure £000s|
|Children, Schools and Families||236,092||(185,198)||50,894||216,663||(166,480)||50,183|
|Environment and Regeneration||67,689||(43,704)||23,985||66,794||(45,564)||21,230|
|Community and Housing||89,282||(27,882)||61,400||83,948||(27,730)||56,218|
|Investments and provisions||31,329||30,850||479||25,979||(28,981)||(3,002)|
|Contribution to/(from) reserves||(4,991)||(4,991)||1,693||0||1,693|
|Net requirement for tax purposes||571,607||353,209||146,716||539,991||(401,383)||138,608|
|Revenue spending 2015/16||146.716|
|Savings in service provision||(15.956)|
|Pay and price increases (net)||1.990|
|Other corporate adjustments, capital budgets effects, etc.||0.965|
|Employers NI Changes||1.458|
|Grants and Other Income||0.547|
|Appropriations to/(from) reserves||2.888|
|Budget requirement 2016/17||138.608|
The council tax uses the band D charge as its basis. We work out all other bands from the band D charge as follows:
|Band||Property value (on 1 April 1991)||Proportion of band D charge||Council tax|
|A||Up to £40,000||6/9||£918.83|
If you live within the area of Wimbledon and Putney Common you pay an extra charge to cover the expenses of the Commons Conservators.
Included within our spending plans are levies that we have to pay to certain bodies outside council control. These are as follows:
|2015/16 £||2016/17 £|
|Lee Valley Regional Park||209,004||203,789|
|Environment Agency: Flood defences||159,411||162,130|
|London Pensions Fund Authority||264,295||261,580|
|Wimbledon and Putney Commons Conservators||292,946||300,042|
Long-term borrowing to fund the capital programme is estimated to be £117m as at 31 March 2016. The capital expenditure proposals currently show that this is expected to remain at £117m at 31 March 2017. The interest charges arising on this amount are financed from the council’s resources.
The estimated number of staff we employ (calculated on a full-time basis) for 2016/2017 is 2,113. This compares with a total of 2,246 in 2015/2016.
This guide explains how your council tax pays for Greater London Authority (GLA) services:
Properties that have stood unoccupied and substantially unfurnished for at least 2 years are subject to a 150% council tax charge from 1 April 2015.
If you think there has been a mistake calculating your bill, or that your home is in the wrong valuation band, please see Council Tax Appeals.
You might be entitled to a reduced bill depending on who lives in the property: see Council Tax Discounts and Reductions.
Some types of property are exempt from council tax: see Council Tax Exemptions.
If you are on a low income you may be entitled to Council Tax Support.
Local Taxation Section
London Borough of Merton
PO Box No 559
Account or billing enquiries: 020 8274 4904
Summons enquiries: 020 8274 4905 or 8545 3468
Fax:020 8545 3960
We are no longer able to attend to personal visitors at the Civic Centre. You can email us anytime or telephone between 9am and 5pm.
This page was last updated on Wednesday 13 July 2016