Camden is consulting businesses on its budget proposals for 2017/18. Since 2011 the funding the Council receives from government has been reducing every year. The decrease in funding, combined with some unavoidable cost increases due to demographic changes such as an ageing population, have meant that the Council is set to have made savings of over £170m from 2010/11 to 2018/19.
The way local government is funded is currently also changing. Since 2013/14 councils have retained a proportion of the Business Rates they collect, currently 17% for Camden. The rest goes to Central Government and the Greater London Authority.
The government are proposing 100% retention of business rates for local government by 2020. This would not mean that Camden would retain all of its business rates, but that business rates around the country are distributed amongst local authorities, rather than being passed to Central Government. However, as councils will lose their grant from government at the same time, this will not necessarily result in an improved financial position for Camden.
Camden welcomes the principle of full retention of business rates by local government, but also argues that the control over discounts, reliefs and the multiplier should be devolved to support local economic growth and priorities.
The Review of Medium-term Financial Strategy report to Camden’s Cabinet in December 2016 set out the council’s plans to address the medium term funding deficit, and an update on preparations towards setting the 2017/18 budget. Find out more and have your say on proposals here. The deadline is Monday, 06 February 2017.