How we calculate Council Tax

How the Local Authority determines the level of Council Tax
Each year, the Local Authority decides our budgetary requirement. This is the amount of money which is needed to provide local services, after taking into account any income from those services (i.e. Fees and charges, and specific government grants for particular services).

We receive the following money from the Welsh Assembly Government to help finance this budget requirement:

Revenue Support Grant - this is a general grant towards the cost of paying for all the Council's services. It is allocated to local authorities, according to a formula.
Business Rates - the Business Rates which each Local Authority collects are paid to the Welsh Assembly Government, who give the income back to local authorities based on the population of each authority.
The rest of the budget requirement (just over 20%) comes from Council Tax. We work out how much Council Tax will be for a Band D property by dividing the amount to be financed from Council Tax by our Council Tax base. To work out the Council Tax base we add up the number of properties we collect Council Tax from. We then adjust this number to take account of Discounts and so on, and we convert the answer into the equivalent number of Band D properties.

Having worked out the Council Tax for a Band D property, we work out the amounts for other properties by applying the following proportions to the Band D amount:

Band       Proportion of Band D
A                     6/9
B                     7/9
C                     8/9
D                     9/9
E                   11/9
F                   13/9
G                   15/9
H                   18/9
I                    21/9