Budget Setting and Precept Calculation

Updated October 2025

Parish councils, irrespective of their size, have a statutory duty to prepare an annual budget. The budget process:

results in the council setting the precept for the following year
gives the clerk overall authority to make spending commitments in line with the decisions of the council
enables progress monitoring during the year by comparing actual spending against planned spending.

The budget is one of the most important annual tasks that the council must undertake and is required as part of ‘proper practices’ set out in the Practitioners’ Guide. It is not lawful to set a precept unless a budget has been prepared and approved.

The ‘precept’ is a balancing figure, referred to in legislation in England as ‘the council tax requirement’ after taking into account projected expenditure, other estimated income and any transfers to or from reserve.

A budget proposal is put to the council in January by the clerk as its Responsible Financial Officer to help councillors decide the precept for the following year. It shows plans for expenditure and also income other than the precept and includes a precept calculation.

A budget monitoring document is presented to the councillors at least quarterly throughout the accounting year so they can assess progress against the planned budget for receipts and payments to date.

Each year the Parish Council sets a carefully considered budget, paid for via the Precept and met by residents through their Council Tax.

● The following is a list of financial obligations for the Council:-

King George V Playing Field, Pavilion, Play Area (with play equipment) and Tennis Courts – maintenance and improvement costs through the year including water rates and cleaning.
Alexander Playing Field and Pavilion – maintenance, grass cutting and water rates.
The Civic Cemetery – maintenance costs, grass cutting, Registrar fees and water rates.
The Madge Field – grass cutting.
South Foreland Valley – annual fee to White Cliffs Countryside Project (through DDC) for management of the site, security costs, water rates for cattle troughs, tree works and any additional maintenance (volunteers undertake scrub clearance and the Council meets fuel costs and refreshments). Also maintenance and insurance of Valley equipment.
The Council uses a maintenance contractor (currently Mr R Purchase) to undertake maintenance through the village, including play equipment repairs, verge cutting and maintenance of the Civic Cemetery at Westcliffe.
Defibrillators x 5 – acquired and placed through the village. Ongoing replacement batteries/pads etc.
CCTV – provided at village car park, King George V Field and village hall. Any ongoing repairs / maintenance.
The Council maintains c40 benches throughout the village.
The Council also pays via DDC 100% of the costs involved in running the public toilets in Reach Road car park – this followed the threat of closure a few years ago.
Clerk as an employee receives an annual salary and the Council is obliged as a legal employer to provide pension contributions.
Annually the Council arranges a Christmas event (village lights previously purchased by the Council) in association with local businesses. Other community events have been arranged in recent years.
The Council has other administration costs to meet, including insurance for assets, hire of village hall.
The Council provides community grants to local sports clubs and organisations.