Bexhill Alliance

Malcolm Johnston, director of resources, and Robin Vennard, head of finance, explained that although Rother collects some £60 million from council tax payers each year it retains only 11 per cent towards the services they provide. Most of the money is passed onto East Sussex County Council, the fire services and the police to fund their services.

In fact the council tax Rother does retain is insufficient to meet the costs of the services it provides and the balance is met from an annual grant from central government.

Some of the income Rother receives from central government is “passported through”. The most significant example of this is housing and council tax benefits which are funded by central government but administered locally. Consequently although it appears as income and expenditure in the council’s accounts Rother has no control over its use.

Council funds are split between capital and revenue. Revenue funding can be used for day-to-day spending and also, if the council wishes, also for capital purchases. However capital funds can and only be used for the purchase of assets that will last for more than one year and may not be used to fund day-to-day expenditure.

Although Mr Johnston and Mr Vennard welcomed and dealt with questions during their presentation, Alliance members had many questions remaining for the question and answer session that followed. Topics covered included how the council dealt with overspends, the funding of Battle and Rye town councils, how much is the current capital reserve and, inevitably, the likely impact of the government’s spending review.

Thanks to the lucid presentation and clear answers to the many questions Alliance members learnt that although the council’s financing is complex it is not quite as impenetrable as a glance as the council’s accounts may suggest.

More information on Bexhill Alliance can be obtained from 01424 216033 or www.bexhillalliance.co.uk