Our financial year runs from April to March, but planning begins the previous summer when we assess the cost of new commitments and initiatives for the next year.
The council's net budget is funded by 3 main sources:
- Revenue Support Grant: 62%
- Business Rates: 13%
- Council Tax: 25%
The net budget is total expenditure less any specific grants, contributions and income from fees and charges.
For the financial year 2023/24 the income funding the Council budget is as follows:
- Welsh Government: 52% (includes the Revenue Support Grant and re-distributed Business Rates)
- Council tax: 18%
- Specific grants: 17%
- Other income: 13%
Denbighshire County Council is one of the largest employers in the county providing the community with essential services and supporting 95,000 residents. It aims to deliver its activity in a sustainable way for the long-term benefit of communities and their future generations.
Like Local Authorities across Wales, the Council’s financial position is currently incredibly challenging, and the need for significant budget savings is unprecedented.
Types of funding
Revenue Support Grant (Welsh Government)
Our main source of income is the Revenue Support Grant from Welsh Government (RSG).
The level of grant is based on the Council’s Standard Spending Assessment (SSA). The SSA is used by the Welsh Government for allocating the grant and is based on a calculation of what each local authority needs to spend to deliver a standard level of service at a common rate of council tax.
In late autumn, the Welsh Government usually publishes its Provisional Settlement which provides an indication of the size of the grant and level of business rates we may expect for the next financial year.
The Welsh Government then issues its Final Settlement (external website). The Final Settlement advises us of our final share of the money so that we can set the budget and council tax levels for the next financial year.
Business rates (re-distributed by Welsh Government)
Business rates (or Non-Domestic Rates (NDR)) are a property tax paid on business and other non-domestic properties to help pay for local services.
The Welsh Government decides how much the rates should be.
Councils collect the money and pay it into the Welsh Government, and they then redistribute the money to all the councils in Wales, based on population.
Find out more about Business rates.
Council tax
Council tax is an annual fee that Denbighshire residents pay to the Council.
The cost is set by the Council each year and goes towards funding local services.
The amount of Council tax you pay depends on which of the bands your property has been allocated to according to its value.
Council tax contributes to 18% of our overall funding.
Grants for specific purposes
The Council may receive grants from the Welsh Government and other organisations that are to be spent on something specific. For example, grants to target educational needs, to provide free school meals, improve waste management and transform towns.
Other income
We also receive income from fees charged for certain council goods and services such as car parking, licencing and planning permission for example.
Capital Budget
Denbighshire County Council must account for its investment in its fixed assets (‘Capital’) separately from the day to day running of the organisation (‘Revenue’).
Fixed assets are things like buildings, roads, schools and vehicles which are expected to have a benefit lasting more than one year.
The Capital budget is funded by the Welsh Government’s Capital Settlement, by prudential borrowing, specific grants or capital receipts.
Each year the Council produces a 3-year capital plan that details where it is likely to spend its funds. All bids for capital funding are reviewed by the Council’s Capital Scrutiny Group (a group made up of elected members and senior officers) before being considered for inclusion in the Capital Plan.
In 2023/2024, spending of £91.7m is expected to be incurred including major expenditure on coastal defence schemes, remodelling the waste service and school building works.