Council budget: Targeting support to make things fairer

The Council has two main types of budgets:

• one for long-term investments (capital investment)
• one for everyday expenses (revenue)

The Council's capital investment budget is £171 million till 2030.

The Council's revenue budget for 2025 / 26 is £162 million.

Unlike other public bodies, local Councils cannot spend more money than they have. They must balance their budgets.

If the government reduces funding, Councils need to cut spending or increase income, like raising Council tax and fees.

If Councils can't balance their budgets

If Councils can't balance their budgets, the government will step in and do it for them, which might not consider local needs or priorities.

This has happened to Councils such as Birmingham and Thurrock Council. The government stepped in after they declared they could not set a balanced budget, which led to cuts in frontline public services to their residents.