How are councils funded?
English councils pay for day-to-day services from four main sources: government grants, a share of business rates, council tax, and fees and charges. Each year MHCLG sets out grants and business rates shares in the local government finance settlement, which the House of Commons approves. The 2026-27 settlement was the first multi-year settlement in a decade, covering 2026-27 to 2028-29.
The settlement's main measure is "core spending power" for each council: settlement grants, retained business rates and an assumed council tax income.
Core spending power assumes every council raises council tax by the maximum allowed, so a rise in it is not all new government money. Check whether a claim is in cash or real terms.
When is the next figure out?
MHCLG publishes at 9:30am on dates pre-announced on the GOV.UK statistics calendar. Council tax levels for the coming year appear in March, revenue budgets in June, capital outturn and revenue outturn later in the year, and the provisional finance settlement usually in December with the final settlement in February. Live tables on borrowing and capital payments are updated each quarter.
Every official release due in the next two weeks is on the release calendar.
Where the figures come from
- Local government finance statistics (MHCLG, Scotland, Wales and Northern Ireland)Where to find official council spending, council tax, finance settlement, debt and audit data for England, plus Scotland, Wales and Northern Ireland.
Related questions
- What do councils spend their money on?
- What is a section 114 notice, and is my council bankrupt?
- What is the maximum council tax increase allowed without a referendum?
This answer says where the official figures are published and how they are defined. It gives no verdict on any claim. To report an error, send a correction request. More questions about councils and local government: all Councils and local government questions.