Merseyside Fire & Rescue Service

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3. Where the money comes from

The Government has carried out a local government resource review and as a result it has introduced a new funding system for local government with effect from 2013/14 based on a business rates retention scheme. Under the new funding system the Authority receives a revenue support grant (RSG); a business rates top-up grant; and a share of the estimated local business rates. These three funding streams make-up the Government's �36.959m formula grant funding for the Authority and approximately 55% of the Authority's income. Changes to the way Council Tax Benefit (now Council Tax Support) is funded and the payment of the 2011/12 Council Tax freeze grant increased grant funding by �7.073m, however, these grants were to compensate the Authority for an equivalent reduction in its council tax income.

Overall Government Grant funding has been cut significantly. Merseyside Fire Authority received an 8.7% grant cut in 2013/14. Its grant cut for 2014/15 will be a further 7.5%.

The Authority's remaining income comes from council tax. The Authority issues a precept (a total of all the council tax to be collected) on the 5 districts of Merseyside. The Authority has kept to its financial plan and increased council tax by the maximum allowable 2% or an extra �1.34 for a band D property (3p per week) which is below the rate of inflation. This is in order to minimise the long term impact of government cuts on the services to the Merseyside Community. In 2013/14 the estimated income from the precept (council tax) is �22.619million, plus an additional one-off �0.055m yield from council tax collection fund surpluses from previous years.

Income 2013/14 Budget �'000 %
Government Funding
Fornula Funding -36.959 55.39%
Council Tax Benefit Grant -6,392  
2011/12 Tax Freeze Grant -681
Start-Up Government Grant Allocation -44.032 65.99%
     
Business Rates    
Increase in estimated local Share above the Government forcast -15 0.02%
     
Council tax    
Estimate -22,619  
Collection Fund (Surplus) deficit -55  
Forecast Council Tax Income -22,674 33.98%
     
  -66,721 100.00%
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