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Local government funding

Local government finance comes from several sources. These include rates, grants and fees from services. All councils must provide annual accounts.

Financing local councils

Local councils derive their income from:

  • rates
  • government grants
  • fees and charges for certain services
  • loans

District Council Rates

Councils are legally required to strike the district rates (the domestic rate and the non-domestic district rate) no later than 15 February each year at a level estimated to meet their financial needs in the next financial year.

The collection of the district rates is undertaken by the Land and Property Services (part of the Department of Finance and Personnel).

Grants

Government grants consist of:

  • the General Grant paid by the Department of the Environment (DOE) both to compensate councils for loss of rate income due to the statutory derating of certain property (derating element) and to provide additional financial resources for those councils whose needs exceed their wealth base (resources element)
  • specific grants paid by government departments to assist the financing of certain revenue and capital expenditure

Subject to the approval of the DOE, loans may be raised by councils to assist the financing or funding of capital projects.

Accounts and audit

Councils are legally required to provide annual accounts to show their financial transactions. These accounts are audited by local government auditors designated by the DOE. They have the power to reject expenditure which is considered not to be lawfully incurred and to surcharge that expenditure upon councillors or officers whom the auditor considers responsible for authorising such expenditure.

Find your local council

You can find out more about your local authorities and the services they provide from their websites. The following links to nidirect's contacts section and the website of the Department of the Environment (DOE) will help.

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