Public sector finance and control Assignment Example | Topics and Well Written Essays - 1250 words

Public sector finance and control - Assignment Example Restricting further council tax band D charge will prompt grant from the national government. A large government grant would be vital in funding most of the services thus reduce the pressure on the local authorities and the tax payers to collect much tax to fund the services. Careful valuation should be done on the properties to ensure that they are in their right band value. There are some instances that properties may be in Band C while their real values correspond with that of Band D. This will be vital in enhancing the efficiency of tax collection on the properties. Discretionary reductions of council on property should be eradicated in order to increase the tax base. Another issue is through the issuance of local government bond to get more finances to fund the services (Burnham & Horton,2013). In United Kingdom, taxation entails payment to the two levels of the government, the local government and the central government. The revenue of central government primarily comes from the contribution of national insurance, fuel duty, corporation tax, value added tax, and income tax. Revenue for local government primarily comes from council tax, grants from central government funds, business rates, and other fees and charges. Taxes are calculated in the tax year which in mostly cases begins on late march or early April and ends on late march or early of the subsequent year (Polito,2010). The personal taxes entail income tax, inheritance tax and council tax. Income tax is the government’s largest source of revenue and makes 30% of the total revenue. Individual Income that is above the personal allowance is taxed basing on a number of bands that entail basic rate, higher rate and additional rate. Inheritance tax is charges on the transfer of property or property value that entails transfer of certain types of trust, gifts offered within a period of seven years upon the death of a property