Council Tax increased at many councils for the 2024/2025 tax year, but do you know what access this tax grants you?
Many people across the UK know they have to pay taxes to their councils annually, mostly in monthly instalments, but very few know what they are entitled to due to paying these taxes.
Firstly, how do council taxes work? You’ll usually have to pay Council Tax if you’re 18 or over. A full Council Tax bill is based on at least 2 adults living in a home. Spouses and partners who live together are jointly responsible for paying the bill. Students, however, may be subject to a discount.
Your council tax is usually based on the valuation band for your home in England, Wales or Scotland, how much your local council charges for that band and if you are entitled to a discount or exemption. A table showing the various bands have been included below:
In England (based on 1 April 1991 values):
Band A: up to £40,000
Band B: £40,001 to £52,000
Band C: £52,001 to £68,000
Band D: £68,001 to £88,000
Band E: £88,001 to £120,000
Band F: £120,001 to £160,000
Band G: £160,001 to £320,000
Band H: more than £320,000
In Wales (based on 1 April 2003 values):
Band A: up to £44,000
Band B: £44,001 to £65,000
Band C: £65,001 to £91,000
Band D: £91,001 to £123,000
Band E: £123,001 to £162,000
Band F: £162,001 to £223,000
Band G: £223,001 to £324,000
Band H: £324,001 to £424,000
Band I: more than £424,000
According to a report by gov.uk here, the authorities had an in-year collection rate of 96% for the 2022/2023 tax year, amounting to £35.7 billion in council tax for 2022-23 out of a total of £37.2 billion collectable. This shows that a huge amount of the budgeted taxes are collected.
This precedes the question, what exactly is the council tax used for? Council tax is a major source of income for most councils and is used to fund a wide range of services for people living in the council such as, street lighting, rubbish collection, libraries, police and fire services, youth clubs, parks and recreation facilities. Below is a more detailed list of services your council tax grants you access to. For peculiar services not listed, you may need to check your council’s website.
Services Funded by Council Tax
Youth Services: Funding for activities, clubs, and support for young people.
Libraries: Maintenance and operation of local libraries.
Parks and Recreation: Upkeep of parks, open spaces, and recreational facilities.
Leisure Facilities: Swimming pools, gyms, and recreation centres.
Social Care: Support for older people, children, and vulnerable individuals.
Voluntary Sector Support: Funding and support for local voluntary organisations.
Planning and Building Control: Services related to urban planning and building regulations.
Environmental Services: Refuse collection, street cleaning, and other environmental maintenance.
Road Maintenance: Upkeep of roads and bridges.
Traffic Management: Ensuring road safety and managing traffic flow.
Parking Services: Control and management of parking.
Civic Services: Administration of elections and registrars for births, marriages, and deaths.
Cemeteries and Crematoria: Management of burial and cremation services.
Consumer Protection: Services to protect consumers and ensure fair trading.
Economic Development: Initiatives for local economic growth and regeneration.
Community Development: Programs to support community development and cohesion.
Housing Services: Social housing, housing strategy, and homelessness services.
Benefit Administration: Administration of Housing Benefits and Council Tax reductions.