A guide to your Council Tax
Southwark Council’s budget - Finance
About the council’s budget
Southwark Council’s revenue budget for 2024-25 represents the estimated cost of delivering our services. The amount we can spend each year is limited by the amount of grant we receive from government and income received from other sources, such as council tax, fees and charges, and any business rate growth that we can retain. Since 2010-11, like other councils, Southwark has experienced significant reductions in government funding. Despite the challenges, the council remains committed to protecting services for the most vulnerable people, cutting waste and mitigating as much of the impact of cuts as possible.
The 2024-25 budget has been prepared in the context of high inflation, the cost of living crisis and uncertainty around government funding. In addition the council has also had to manage the increasingly high demands and pressures on front-line services, particularly adult social care, children’s services, homelessness services and welfare support. The council has to fund local government pay increases and higher inflation costs.
Due to changes in government funding our revenue budget is reliant upon the council raising funds through council tax and business rates with some revenue support grant received from government. In order to present a balanced revenue budget for 2024-25 that continues to protect services for our most vulnerable residents, the council is raising council tax by a local increase of 2.99% and 2% for the adult social care precept, a total of 4.99%.
Adult social care precept
It was agreed by the council to increase the adult social care precept in 2024-25 by 2% in line with government guidance. This will raise an additional £2.8 million in 2024-25. The adult social care spending plans assume this level of additional funding will be available. A 2% increase for the adult social care precept for 2024-25 equates to £25.17 for a band D equivalent.
Retained business rates will fund 47.1% of the council’s budget for 2024-25. 12.5% will be from revenue support grant and 40.4% from the council tax that residents pay.
Where do the council’s resources come from?
| Income type | Share of resources |
|---|---|
| Retained business rates | 47.1% |
| Council Tax | 40.4% |
| Revenue support grant | 12.5% |
How is Southwark Council’s part of the bill worked out?
To work out the tax for each band, we divide Southwark’s total council tax requirement by a number known as the council tax base. This gives the council tax for band D, with the other bands calculated as a proportion of this. For 2024-25, band D is £1,321.58 which is £148,236,342 divided by 112,166 (council tax base).
What other services does my bill pay for?
Part of your council tax meets the costs of the Greater London Authority (GLA). This is known as the GLA precept and it covers the cost of police, fire and transport for the whole of London. The Mayor of London and the London Assembly set the GLA precept and Southwark Council has no control over this contribution. This year the GLA precept has been increased by 8.58% for band D.
Southwark Council’s income and expenditure
The revenue budget is mainly funded by revenue support grant, council tax and business rates. Schools are funded through the dedicated schools grant and other government grants.
This table explains our budget:
| 2023-24 Net Budget (adj) £m |
Service | 2024-25 Expenditure £m |
2024-25 Income £m |
2024-25 Net Budget £m |
|---|---|---|---|---|
| 86.3 | Children’s service | 336.7 | -250.8 | 85.9 |
| 73.4 | Adult social care | 158.9 | -80.7 | 78.2 |
| 19.6 | Highways | 24.7 | -5.2 | 19.5 |
| -5.8 | Planning & Growth | 15.8 | -22.2 | -6.4 |
| 16.8 | Parks & Leisure | 20.0 | -6.3 | 13.7 |
| 7.9 | Libraries | 8.6 | -0.4 | 8.2 |
| -3.8 | Regulatory Services | 8.7 | -4.3 | 4.4 |
| 41.1 | Refuse collection and disposal | 72.6 | -33.2 | 39.4 |
| 15.1 | Customer and Exchequer | 156.3 | -140.3 | 16.0 |
| 24.5 | Housing (General Fund) | 64.5 | -38.2 | 26.3 |
| 73.7 | Other services | 290.0 | -215.8 | 74.2 |
| 348.8 | Total spending on services | 1,156.8 | -797.4 | 359.4 |
|
Funded by: |
||||
| -167.2 | Retained Business Rates and Top Up | -169.1 | ||
| -42.2 | Revenue Support Grant | -45.0 | ||
| -0.3 | Council Tax surplus/deficit | 2.9 | ||
| 137.4 | Southwark's Council Tax Requirement | 148.2 | ||
| 109,174.00 | Divided by Council Tax base | 112,166.00 | ||
| 1,1258.78 | Which equals Southwark's Band D council tax | 1,321.58 | ||
| 47.4 | GLA Requirement | 52.9 | ||
| 109,174.00 | Divided by Council Tax base | 112,166.00 | ||
| 434.14 | Which equals GLA Band D council tax | 471.4 | ||
| 1,692.92 | Total Band D Council Tax | 1,792.98 |
| % | |
|---|---|
| Children's Services | 23.9 |
| Adult Social Care | 21.8 |
| Environment and Leisure | 29.4 |
| Other | 24.9 |
Other key information
At 31 March 2023, the council’s uncommitted reserves were £39.6 million, investments £220 million and borrowing £991 million. Southwark Council employed approximately 4,639 staff (FTE) as at 31 March 2023.
How is Southwark Council Tax calculated?
In 2024-25 a band D charge will be £1,321.58 which is a £62.80 increase from the band D Council Tax charge in 2023-24 as shown in the table below.
| £ | |
|---|---|
| 2023-24 band D charge | 1,258.78 |
| Add 4.99% increase | 62.80 |
| 2023-24 band D charge | 1,321.58 |
Page last updated: 19 March 2024
