3. Further context around Council Tax
Local authorities are responsible for billing and collecting Council Tax. Before the start of each financial year, local authorities issue Council Tax bills to householders in each dwelling. Each Council Tax bill is calculated by applying the appropriate band rate for the local authority, then applying any discounts, exemptions and reductions. Chart 4 illustrates the breakdown of the gross Council Tax potential yield into Council Tax billed and the amounts not billed due to Council Tax Reduction (CTR), discounts and exemptions in 2019-20. This publication is concerned with the Council Tax billed each year, as provided in the CTRR Q4 returns, which is currently approximately £2.675 billion in 2020-21.
|General Revenue Grant 1||6,937,046||56.3%|
|NDR Distributable Amount||2,853,000||23.2%|
|Other Funding 2||40,204||0.3%|
|Total General Funding||12,323,226||100.0%|
Source: LFR A0, Scottish Local Government Finance Statistics (SLGFS) 2019-20
In 2019-20, the latest audited figures, Council Tax income (for all billing years) amounted to £2.493 billion. This accounted for 20.2 per cent, one-fifth, of total local authority revenue funding (£12.323 billion).