Finance

Parish councils may raise a ‘precept’ on the council tax bills produced by their local billing authority (unitary authority or district council). This is essentially a demand for a sum to be collected through the council tax system. Council tax-payers cannot refuse to pay it, and the billing authority cannot refuse to levy it. It is the only source of tax revenue available to parish councils.

The Local Audit and Accountability Act 2014 sets out a the audit framework for local public authorities which are currently covered by the Audit Commission regime. Under the audit framework, smaller authorities, including parish councils, internal drainage boards, charter trustees and port health authorities, with an annual turnover not exceeding £25,000 will be exempt from routine external audit. In place of the routine audit, these smaller authorities will be subject to the new transparency requirements laid out in the Transparency Code. 

This will enable local electors and ratepayers to access relevant information about the authorities’ accounts and governance.