How council tax is spent

How we calculate your council tax  

Following more than a decade of austerity due to reduced government funding, Redbridge Council has once again been given no option but to increase council tax to make up for the gap in government funding.  

This year's financial package received from government assumed that councils will increase council tax and apply a social care precept to make up for the gap in government funding for general services and social care.  This year’s council tax increase includes the maximum 2.99% uplift in the 'general' council tax element and a further 2.00% rise in the ring-fenced adult social care precept.  

Overall, the council tax for Redbridge including GLA precept in 2024/25 at band D increased by £114.12 which equates to an increase of 5.8% approximately £2.19 per week.  

The total Band D council tax including the GLA element is £2,089.87 and is made up as follows:  

	Redbridge   £	GLA  £	Total  £
Total council tax 2023/24	1,541.61	434.14	1,975.75
Increase in Redbridge council tax 2.99%	46.03	-	46.03
Increase in Adult Social Care Precept 2.00%	30.83	-	30.83
Greater London Authority Element 8.6%	-	37.26	37.26
Total Increase in council tax 2024/25	76.86	37.26	114.12
Total council tax 2024/25	1,618.47	471.40	2,089.87

 The Secretary of State made an offer to adult social care authorities. (“Adult social care authorities” are local authorities which have functions under Part 1 of the Care Act 2014, namely county councils in England, district councils for an area in England for which there is no county council, London borough councils, the Common Council of the City of London, and the Council of the Isles of Scilly.) 

The offer was the option of an adult social care authority being able to charge an additional “precept” on its council tax without holding a referendum, to assist the authority in meeting its expenditure on adult social care from the financial year 2016/17. It was originally made in respect of the financial years up to and including 2019/20. If the Secretary of State chooses to renew this offer in respect of a particular financial year, this is subject to the approval of the House of Commons. 

 

How we spend our budget 

Our budget, which includes Government grants and your council tax, is used in the following ways:  

• To help deliver frontline services within the Borough 

• To fund vital support services to assist in frontline service delivery 

• to pay for the services we receive from a number of external bodies 

 

What we spend your council tax on 

Each year, once we are aware of the amount of funding we will receive from the government, we set the level of council tax to meet the cost of providing council services in the borough.  

This table tells you how much we plan to spend on services in the coming year and how much we spent on them last year.   

2023/24 *  £m	How your money is spent	2024/25  £m
387.7	Children's Services	411.4
120.8	Adult Social Care Services	133.1
10.0	Leisure Services	10.6
48.8	Environmental Services & Highways (Civic Pride)	52.4
19.0	Regeneration & Property	19.0
46.9	Housing	50.2
164.2	Customer Care & Benefits including Concessionary Travel	165.3
6.1	Corporate Services	6.9
803.5	Gross Expenditure on General Fund Services	848.9
33.7	Housing Revenue Account (HRA)	38.4
18.9	Capital Financing	19.1
22.9	Unallocated Costs & Contingencies	28.2
19.6	Levies	20.4
898.6	Total Gross Expenditure including (HRA)	955.0
(150.3)	Rent, Fees & Charges and Other Income	(160.7)
(611.4)	Grants, Subsidies & Business Rates	(645.2)
2.6	Collection Fund Surplus	(1.4)
139.5	council tax Requirement	147.7
* 2023/24 services figures adjusted for allocations from Unallocated Costs & Contingencies and other budget changes during the year

 

Changes in Spending	£m	£m
council tax Requirement 2023/24		139.5
Spending Changes
Growth for Existing Services and New Initiatives	21.7
New Savings	(12.4)
Levies	0.8
Capital Financing	0.2
Inflation / Contingencies	10.6	20.9
Funding Changes
Movement in Reserves	4.6
Collection Fund Surplus	(4.0)
Government Grants / Business Rates	(13.3)	(12.7)
council tax Requirement 2024/25		147.7

 

What else does your council tax pay for 

East London Waste Authority (ELWA) 

ELWA has the statutory responsibility for the disposal of household and commercial waste collected by the London Boroughs of Barking & Dagenham, Havering, Newham and Redbridge, and for the provision of Reuse and Recycling Centres in its area.  

Waste disposal is carried out under a 25-year Integrated Waste Management Services Contract by Renewi plc.  ELWA receives funding support via the government’s Private Finance Initiative.  

Budget 2024/25 

ELWA’s total levy requirement is £75.740m (2023/24: £72.846m).  The 2024/25 budget includes an inflationary increase in contract costs.  This is offset by a decrease in the total waste tonnage and an increase in capital financing costs (both relative to the 2023/24 budget) and the forecast 2023/24 budget surplus. The increase for the London Borough of Redbridge is 3.99%.   

The major part of the ELWA Levy is apportioned on the basis of relative amounts of household waste delivered to ELWA by each of the four constituent London Boroughs, with the remainder apportioned according to their council tax Bases.  

The Levy on the London Borough of Redbridge for 2024/25 is £19.933m (2023/24: £19.168m). 

London Pensions Fund Authority (LPFA) 

The London Pensions Fund Authority (LPFA) raises a levy each year to meet expenditure on premature retirement compensation and outstanding personnel matters for which LPFA is responsible and cannot charge to the pension fund. These payments relate to former employees of the Greater London Council (GLC), the Inner London Education Authority (ILEA) and the London Residuary Body (LRB). 

For 2024/25, the income to be raised by levies is set out below. The Greater London levy is payable in all boroughs, the Inner London levy only in Inner London Boroughs (including the City of London). The figures show the total to be raised.  

	£m
Inner London	7.0
Greater London	1.0
Total	8.0

The Levy on the London Borough of Redbridge for 2024/25 is £0.029m (£0.029m for 2023/24).  

From 2022 onwards, a portion of the amount previously raised as levies is being paid into the LPFA Pension Fund to address a funding deficit in respect of former GLC, ILEA, and LRB employees. 

Lee Valley Regional Park Authority  

Lee Valley Regional Park is a unique leisure, sports and environmental destination for all residents of London, Essex and Hertfordshire. The 26 mile long, 10,000 acre park, much of it formerly derelict land, is partly funded by a levy on the council tax. This year there has been a 3% increase in this levy.   

Budget/Levy 2024/25	2023/24  £m	2024/25  £m
Authority Operating Expenditure	15.5	15.3
Authority Operating Income	(7.3)	(7.8)
Net Service Operating Costs	8.2	7.5
Financing Costs - Debt servicing/repayments  - Capital investment	2.0  0.9	2.2  1.3
Total Net Expenditure	11.1	11.0
Net use of Reserves	(0.5)	(0.0)
Total Levy	(10.6)	(11.0)

The Levy on the London Borough of Redbridge for 2024/25 is £0.236m (£0.230m for 2023/24). 

The Environment Agency (EA) 

The Environment Agency is a levying body for its Flood and Coastal Erosion Risk Management Functions under the Flood and Water Management Act 2010 and the Environment Agency (Levies) (England and Wales) Regulations 2011.  

The Environment Agency has powers in respect of flood and coastal erosion risk management for 5,200 kilometres of main river and along tidal and sea defences in the area of the Thames Regional Flood and Coastal Committee. Money is spent on the construction of new flood defence schemes, the maintenance of the river system and existing flood defences together with the operation of a flood warning system and management of the risk of coastal erosion.

The financial details are: 

Thames Regional Flood and Coastal Committee  

The majority of funding for flood defence comes directly from the Department for the Environment, Food and Rural Affairs (Defra). However, under the new Partnership Funding rule not all schemes will attract full central funding. To provide local funding for local priorities and contributions for partnership funding the Regional Flood and Coastal Committees recommend through the Environment Agency a local levy.   

A change in the gross budgeted expenditure between years reflects the programme of works for both capital and revenue needed by the Regional Flood and Coastal Committee to which you contribute. The total Local Levy raised by this committee has increased by 1.99%.  

The total Local Levy raised has increased from £12.526m in 2023/24 to £12.776m for 2024/25.  

The Levy on the London Borough of Redbridge for 2024/25 is £0.217m (£0.214m for 2023/24). 

	2023/24 £m	2024/25 £m
Total council tax Base	5.297m	5.365m
Gross expenditure	140.213	157.319
Levies Raised	12.526	12.776

 

Greater London Authority (GLA) 

The Mayor of London’s budget for the 2024/25 financial year sets out his priorities, including supporting Londoners through the current cost-of-living crisis. The budget also supports job creation and London’s business community, our city’s future growth and economic success and the Mayor’s work to continue building a safer, fairer and greener London for everyone.  

This year’s budget will provide resources to improve the key public services Londoners need and help address the cost-of-living crisis. This includes extending the Mayor’s universal free school meals programme for all state primary school children for a further academic year until at least July 2025, freezing TfL pay as you go and other non-government regulated fares for the next twelve months and delivering more genuinely affordable homes. The budget also provides resources to support jobs and growth, fund skills and retraining programmes, help rough sleepers off the streets, invest in services for children and young people and make London a fairer and greener place to live. Moreover, it prioritises resources for the Metropolitan Police Service (MPS) and London Fire Brigade (LFB) to keep Londoners safe, including violence reduction initiatives, support for victims of crime, funding to maintain frontline officer numbers, continued reform of the MPS and the delivery of projects to divert vulnerable young people away from gangs and violence.   

In light of the conditions imposed as a result of government funding deals, it has been necessary to provide additional resources through local taxation income, including council tax, to maintain London’s transport system and preserve and expand the bus network. 

Council tax for GLA services  

The Greater London Authority’s (GLA) share of the council tax for a typical Band D property has been increased by £37.26 (or 72p per week) to £471.40. The additional income from this increase in council tax will fund the MPS and the LFB, and will also go towards ensuring existing public transport services in London can be maintained, meeting requirements set by the government in funding agreements. Council taxpayers in the City of London, which has its own police force, will pay £166.27. 

Council tax	2023/24   £	Change  £	2024/25   £
MOPAC (Metropolitan Police)	292.13	13.00	305.13
LFC (London Fire Brigade)	62.48	4.26	66.74
GLA	22.44	0.00	22.44
TfL (Transport)	57.09	20.00	77.09
Total	434.14	37.26	471.40

Investing in frontline services

This budget will enable the Mayor to fulfil his key priorities for London. These include:   

• Freezing TfL fares (excluding central government regulated fares such as travelcards) in 2024 with off-peak fares being introduced on Fridays all day for an initial three month trial period between March and May 2024 

• Working with London boroughs to maintain existing concessionary travel and assisted door to door transport schemes. This includes, for example, maintaining free bus and tram travel for under 18s as well as free off-peak travel across the network for older Londoners (supplemented by free travel before 9am on Fridays for those aged 60+ for an initial three month trial period from March to May 2024), the disabled, armed forces personnel in uniform and eligible armed services veterans and protecting the Taxicard and Dial-a-Ride schemes. 

• Providing £140m to continue to fund universal free school meals for London’s estimated 287,000 state primary school children for a second academic year until at least July 2025. This will save families up to £1,000 over two years per child as the cost-of-living crisis continues to hit 

• Ensuring the Metropolitan Police Service (MPS) has the resources it needs to tackle violent crime by investing an additional £151m in 2024/25 in policing and crime prevention. This includes investing an extra £6.5m in London’s Violence Reduction Unit to divert young people away from gangs and crime. More generally an additional £189m is being invested to deliver reform of the MPS, including through the New Met for London programme to increase trust and confidence amongst Londoners in their police service 

• Funding 1,300 additional police officer posts and 500 extra Police Community Support Officers (PCSOs) from locally raised council tax and business rates revenues. This budget will see MPS receiving a record £1.143 bn in funding from the GLA 

• Tackling the underlying causes of crime through the rollout of funding to support disadvantaged young Londoners to access positive opportunities and constructive activities that allow them to make the most of their potential, as well as resources for new violence reduction initiatives 

• Protecting vulnerable children and women at risk of abuse and domestic violence 

• Providing resources to rollout a transformation programme so that the London Fire Brigade (LFB) can implement the recommendations of the Grenfell Tower Inquiry and other key improvements. The London Fire Commissioner, with the full support of the Mayor, is also committed to continuing to implement the deep-rooted reform needed to the culture and systems within the LFB 

• Continuing the Hopper bus fare, which makes transport more affordable for millions of Londoners 

• Delivering the Elizabeth line on its full timetable and route. The Elizabeth line has increased central London’s rail capacity by ten per cent and is forecast to see upwards of 200 million passenger journeys per annum making it the busiest rail line in the UK. This follows on from the opening of Northern line extension to Nine Elms and Battersea Power Station in September 2021 

• Continuing to tackle London’s housing crisis, by investing £6.4 bn over the next five years to increase the number of Londoners who have a safe, decent and affordable home as well as allocating resources to tackle homelessness and reduce rough sleeping 

• Tackling the climate emergency following the expansion of the Ultra Low Emission Zone (ULEZ) London-wide to tackle air pollution, which has been supported by a £210m vehicle scrappage scheme for small businesses and Londoners to help them switch to cleaner vehicles or retrofit their existing ones 

• Investing in projects to enable more walking and cycling across London and 

• Funding projects to bring Londoners together, promote arts, sports and culture, help tackle inequality and improve the environment.  

Summary of GLA budget  

The following tables compare the GLA Group’s planned spending for 2024/25 with last year and sets out why it has changed. 

The GLA’s planned gross expenditure is higher this year. This reflects the additional resources the Mayor is investing in policing, the fire brigade and transport services. Overall, the council tax requirement has increased because of the extra resources for the MPS and the LFB and to secure funding to maintain existing transport services including buses and the tube network. There has been a 1.4 per cent increase in London’s residential property taxbase.   

How the GLA budget is funded	2024/25 £m
Gross Expenditure	17,480.4
Government grants and retained Business Rates	(7,433.2)
Fares, charges and other income	(8,130.3)
Changes in reserves	(426.6)
Amount met by council tax payers	1,490.3

  

Changes in spending	£m
2023/24 council tax requirement	1,353.1
Net change in service expenditure and income	485.3
Change in use of reserves	43.7
Government grants and retained business rates	(272.3)
Other changes	(119.5)
Amount met by council tax payers	1,490.3