If the Council determines that expenditure budgeted cannot or should not be funded entirely from reserves and income, then it must resolve to make a precept (a charge from one local authority to another) specifying the rate of tax to be charged on its behalf. Currently, the capacity of Town and Parish Councils to set precepts is uncapped unlike Unitary, Borough, and County Councils. However, it is imprudent to assume that this situation will remain. If the Council chose to set a very low or even zero precept and the following year a cap was introduced the Council would not be able to function once balances ran out. Even if no such cap was introduced, to have a low (or nil) precept then to impose a precept which is dramatically higher would be unwise. With regard to reserves, the Good Councillor’s Guide to Finance and Transparency (DCLG) states: “Local councils need to hold an amount in reserves to meet unexpected expenditure, otherwise they could run out of money before the end of the financial year. A council should typically hold between 3 and 12 months expenditure as a general reserve.”
The amount you pay in Council Tax for is divided amongst the following:
- North Northamptonshire Council
- Office of Northamptonshire Police, Fire and Crime Commissioner
- Desborough Town Council
The total precept for 2024/25 is £75,000 which represents about £19.21 at Band D, or £14.94 at Band B.