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Council tax and local services

Study note

Local councils need money to run the services they provide, and this comes from two main sources. Part of the funding is money given to them by central government. The rest comes from a local tax, paid by residents in the area, which is called council tax. This local tax is different from income tax, VAT and National Insurance, which are national taxes.

The money raised through council tax, together with the central government grant, helps pay for local services. These include schools, libraries, roads and rubbish collection, the everyday things that keep a community running. For the test, remember that the local tax residents pay towards council services is called council tax, and that it helps fund services such as schools, roads and rubbish collection.

Memory tip: Council tax helps pay for local services like schools, roads and rubbish collection.

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Question 1 of 1

What is the local tax paid by residents to help fund council services called?

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Show all questions and answers for Council tax and local services(1 question with explanations)

Council tax and local services: questions, answers and explanations

  1. 1. What is the local tax paid by residents to help fund council services called?

    • National Insurance
    • VAT
    • Council tax
    • Income tax

    Correct answer: Council tax

    Council tax is the local tax that helps fund council services.

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