There are four things which decide how much Council Tax you have to pay:

•  the local council’s budget
•  the value of your home
•  the number and type of people living in your home
•  your income and savings.

The council's budget

Each council sets its budget and its Council Tax level in March. The budget should be set to provide what the Government considers to be a standard level of service to local taxpayers. If the council tries to raise more money than the Government thinks it needs to provide this level of service, then it has sweeping powers to intervene to keep the spending and the Council Tax down.

Most of the money to pay for local services such as rubbish collection and education comes from the Government. The amount the Government pays to each council varies widely and that can cause the tax charged by neighbouring councils to vary widely.