How is local government funded?

Published 30/11/2020   |   Last Updated 14/12/2020   |   Reading Time minutes

Local Government comprises a number of different organisations, including local authorities, Police forces, Fire services and National Park organisations.  The UK and Welsh Government are the primary source of funding for these organisations.

Local authorities receive funding through the annual local government settlement. This is calculated using a needs based formula. The three main aspects of funding for local authorities are Revenue Support Grant (RSG), council tax and business rates.

Police Forces receive funding through a combination of Home Office, Welsh Government and a council tax precept.

Fire services receive some Welsh Government funding but receive most of their funding from local authorities.