How Council Tax is Calculated and Used

This section tells you more about Council Tax.

Nottingham City Council receives money from the Government in the form of Revenue Support Grant and retains a proportion of the income from Business Rates. This helps cover the cost of local services.

These services include:

  • Education 
  • Social Services
  • Cultural Services
  • Environmental Services
  • Planning

The money received from the Government is not enough to cover the whole cost of Council services. The balance is funded from the Council Tax.

For 2016/2017 the total budget of the Council is financed as follows:

2016/17 £m Amount per Head of population (£)

Gross revenue spending
on council services

943.0

3,000

Gross Income

-699.1

-2,224

Budget Requirement

243.9

776

Financed by

Retained Business Rates

62.3

198

Business Rates Top-up

27.5

88

Revenue Support Grant

58.4

186

Collection Fund Surplus

1.5

5

Council Tax Requirement

94.2

300

Details on how the Council spends its money is shown below.

Each year the Council identifies its spending needs and is advised of the money it will receive from Central Government. From this, the amount to be funded by Council Tax is derived.

The Authority then calculate how much the charge will be for a band D property. The charges for the other bands are then calculated using the following proportions of the band D charge:

Band A B C D E F G H

Proportion of Band D

6/9ths

7/9ths

8/9ths

1

11/9ths

13/9ths

15/9ths

18/9ths

The amount of Council Tax that you pay will depend upon a number of factors.

Each property is placed into one of eight valuation bands depending on its market value as at 1 April 1991. Click here to read more about Council Tax bands and charges.

The full Council Tax is due on properties in which two or more adults are living. If there are fewer than two adults resident then a discount may be allowed. Certain people may be 'disregarded' when counting the number of residents and, in effect, this person will be treated as though they were not resident. A reduction may be applied if a property is the main residence of a person with a disability and the property contains specific features which are required to meet their needs. The full tax will be payable on properties that are empty and unfurnished unless one of the exemptions applies. Click here for more information about discounts, exemptions, reductions and empty properties.

How the Council Spends its Money

The chart below details how the Council will spend its money for the year 2016/17.

Amounts show the total cost of services (including the costs of internal support functions charged to services).

2016/17 Council Tax Adult Social Care charge

Statement concerning adult social care funding from the Secretary of State for Communities and Local Government

The Secretary of State for Communities and Local Government has made an offer to adult social care authorities. ("Adult social care authorities" are local authorities which have functions under Part 1 of the Care Act 2014, namely county councils in England, district councils for an area in England for which there is no county council, London borough councils, the Common Council of the City of London and the Council of the Isles of Scilly.)

The offer is the option of an adult social care authority being able to charge a "precept" of up to 2% on its council tax for the financial year beginning in 2016 without holding a referendum, to assist the authority in meeting expenditure on adult social care. Subject to the annual approval of the House of Commons, the Secretary of State intends to offer the option of charging this "precept" in relation to each financial year up to and including the financial year 2019-20.

In relation to the financial year beginning in 2016 the Secretary of State has determined (and the House of Commons has approved) a referendum principle of 4% (comprising 2% for expenditure on adult social care and 2% for other expenditure), for adult social care authorities. These authorities may therefore set council tax up to this percentage in 2016 without holding a referendum.

Council Tax Bill leaflets

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