Where the money comes from
We plan to spend £162 million in 2008-9 to provide services for South Tyneside's 151,000 residents, plus a further £88m on education.
Most of our money comes from government (around 78%) either through our revenue support grant, the new area-based grant, dedicated schools grant (funding for education), or from business rates.
We fund a small amount (less than 1%) from the council's own reserves (or savings) and the remaining 21% of our money comes from the council taxpayers.
We expect to receive council tax income of just over £54 million in 2008-9.
Where we expect our money to come from in 2008-9
Revenue funding £250m, including £88m on education
- Council tax 21%
- Reserves 1%
- Revenue support grant 4%
- Area-based grant 8%
- Business rates 31%
- Dedicated schools grant 35%
Business rates
Business rates are organised on a national basis. The amount that local businesses pay is calculated by applying a rateable value formula set by the government. The council collects these rates on behalf of central government, who then redistribute the amounts back to councils on the basis of population.
Grants
For next year onwards, a number of grants have been amalgamated into a new grant called the area-based grant. The council is able to use the area-based grant to fund the key priorities we agree each year.
