How Councils Spend Your Money
English councils collectively spend £104.6 billion on services each year. The biggest cost is education, which accounts for 40% of all spending.
National spending breakdown
How £104.6 billion is split across services
Source: GOV.UK Revenue Expenditure (RO returns) 2025-26. Net service expenditure.
What each service covers
A plain-English breakdown
Education
Must provideSchools, special educational needs, school transport, early years provision.
Adult Social Care
Must provideCare homes, home care, mental health services, support for disabled adults.
Children's Social Care
Must provideChild protection, looked-after children, fostering, adoption services.
Environment & Streets
Must provideWaste collection, recycling, street cleaning, parks and open spaces.
Public Health
Must provideCommunity health, substance misuse, sexual health clinics, health visiting.
Council Running Costs
OptionalStaff, IT systems, legal services, finance, democratic services, elections.
Housing
Must provideHomelessness prevention, temporary accommodation, housing standards.
Roads & Transport
Must provideRoad maintenance, pothole repairs, street lighting, concessionary fares.
Leisure & Culture
OptionalLibraries, leisure centres, museums, arts funding, community centres.
Planning
Must providePlanning applications, building control, conservation, local plans.
Statutory vs discretionary services
What councils must provide by law
Statutory services are ones that councils are required by law to provide. These include education, social care, waste collection, and housing support. Councils cannot stop providing these services even if money is tight.
Discretionary services are optional. These include libraries, leisure centres, arts funding, and community events. When councils need to save money, these services are usually the first to be cut or reduced.
In recent years, rising costs in statutory areas (especially adult social care and children's services) have squeezed budgets for discretionary services across the country.
How council budgets are set
The annual cycle
- Autumn — The government announces how much funding each council will receive
- December-January — Councils draft their budget and propose council tax levels
- February — The budget is debated and voted on by councillors
- March — Council tax bills are sent to residents
- April — The new financial year begins and the budget takes effect
Council tax increases are capped by central government. Currently, councils can raise council tax by up to 5% without holding a referendum (2% general increase plus 3% adult social care precept).
Where council money comes from
Not all funding is from council tax
Council tax is only part of the picture. Councils are funded from several sources:
Common questions
About council spending
What is the biggest cost for councils?
Education is the largest spending area, accounting for 40% of total council spending nationally (£41.9 billion).
What is statutory vs discretionary spending?
Statutory services are ones councils must provide by law (like social care, education, waste collection). Discretionary services are optional (like leisure centres, arts funding). When budgets are tight, discretionary services are usually cut first.
How much do all councils spend in total?
English councils collectively spend £104.6 billion on services each year (2025-26 figures, net service expenditure).
Where can I see my council's spending?
You can see a full breakdown of your council's spending on CivAccount. Search for your council on the homepage to see their budget dashboard.