A CLEVELAND council has collected £750,000 more in tax than it expected.

The news was revealed by Stockton Borough Council as it began the process of working out next year's budget and council tax rate.

Of the £766,000 surplus, £66,953 will go to the Police Authority. The council will include the £699,047 in its calculations for next year's budget.

A report to the council's cabinet committee, due to meet next Thursday, says the authority must maintain a separate fund, The collection fund, for the collection and distribution of tax. The latest assessment of the fund showed there was more money in the account than had been taken out.

The report said: "It is recommended that the estimated surplus of £766,000 in the Collection Fund be noted and the council's share of the surplus be included in the calculation of next year's council tax. Although prior-year collection rates are marginally exceeding 98 per cent, it is considered prudent to retain the collection rate estimates at 98 per cent."

Meanwhile, officers at the council have revealed that money is still being taken in outstanding debt from the poll tax, which was abolished ten years ago. The authority no longer takes non-poll tax payers to court, but is still collecting money from long-standing payment arrangements. Stockton Borough Council is hoping not to raise its part of the council tax next April, but the overall bill for tax-payers is likely to increase because of increased police and firefighting costs.

The authority was criticised in October after The Northern Echo revealed that it had threatened a 94-year-old woman with court action for forgetting to pay a £12 council bill.