Funding

Where does our funding come from?

Local government finance comes from several sources. Local councils obtain their income from:

• rates
• government grants
• fees and charges for certain services
• loans

District council rates

Councils are legally required to strike the district rates (the domestic district rate and the non-domestic district rate) no later than 15 February each year. The level of rates will be estimated in order to adequately meet the financial needs in the next financial year.

• District rates 2025/26

Grants

Department for Communities Local Government & Housing Regulation Division Government grants consist of:

• Rates Support Grant, which provides extra financial resources for those councils whose needs exceed their wealth base
• De-rating Grant, which compensates councils for the loss of district rate income due to the statutory de-rating (lowering of rates) of certain property
• Transferred Functions Grant, which supports the functions that transferred as part of local government reform to district councils
• Civil Contingencies Grant to support councils in emergency planning

Other government departments pay specific grants to councils which help with the financing of certain revenue and capital expenditure.