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How Council Tax is Calculated and Used

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 2020 to 2021 the total budget of the Council is financed as follows:

2020 to 2021

£m

Amount per head of population (£)

Gross revenue spending on council services

978.1

2,954

Gross income

-730.0

-2,205

Net budget

248.1

749

Financed by:

 

 

Retained Business Rates

67.9

205

Business Rates Top-up

28.6

86

Revenue Support Grant

25.7

78

Collection Fund Surplus

4.0

12

Council Tax Requirement

121.8

368

 

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 worked out.

The Authority then calculates 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

The 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 several 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 related to 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. 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 contains features which 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

Details of how the Council will spend its money for the year 2020 to 2021.

Adult Social Care £174.5m

Planning Services £19.9m

Highways & Transport Services £106.1m

Housing Services £169.3m

Environmental and Regulatory Services £56.9m

Children's & Education Services £219.4m

Cultural and Related Services £45.4m

Contribution to Reserves £12.7m

Housing Revenue Account £105.5m

Other Services £68.5m

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

Council Tax Adult Social Care charge

Statement about Adult Social Care funding from the Secretary of State for Housing, Communities and Local Government.

The Secretary of State 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
  • the Council of the Isles of Scilly 

The offer was the option of an adult social care authority being able to charge an additional “precept” on its council tax without holding a referendum, to assist the authority in meeting its expenditure on adult social care from the financial year 2016-17. It was originally made in respect of the financial years up to and including 2019-20. If the Secretary of State chooses to renew this offer in respect of a particular financial year, this is subject to the approval of the House of Commons.

Council Tax Bill leaflets