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Where do local councils get their money from?

Councils, which are sometimes also referred to as local authorities, get their money from three different sources. These are central government, council tax and business rates.

Central government provides councils with money to help them to deliver certain services. It is up to central government how much money it hands over to councils.

Local authorities also get money from council tax. Each household pays a certain amount of council tax depending on how much their home is worth.

Business rates are a property tax on businesses and other properties that aren’t homes.

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