How we calculate and spend council tax

Increases to council tax explained

The below tables show how much Lichfield District Council (including parish councils) will spend and the amount needed from council tax.

District council total income (including parish councils):

Lichfield District Council and parish councils	2021/22	2020/21	Change	Change
Gross spending	£60.010m	£55.102m	£4.908m	8.91%
Parish councils	£2.044m	£1.998m	£0.046m	2.32%
Total including parish councils	£62.054m	£57.100m	£4.954m	8.68%
Income	-£49.690m	-£45.054m	-£4.636m	10.29%
Retained business rates	-£3.122m	-£3.020m	-£0.102m	3.38%
Total income (excluding council tax)	-£52.812m	-£48.074m	-£4.738m	9.86%

District council total net expenditure

Lichfield District Council	2021/22	2020/21	Change	Change
Net expenditure (gross spending less income)	£10.320m	£10.049m	£0.271m	2.70%
Retained business rates	-£3.122m	-£3.020m	-£0.102m	3.38%
Amount to be raised from council tax	£7.198m	£7.029m	£0.169m	2.41%

Why we need to increase council tax this financial year (2021/22)

We raised £7.029m from council tax in 2020/21.

Change in council spending for 2021/22

Lower inflation	-£0.160m
Savings, efficiencies and additional income	-£0.773m
Service developments and other changes	£0.392m
Covid-19 risk recovery contingency budget	£1.141m
Covid-19 response and ongoing impact	£0.289m
Reduction in the planned transfer of money to our balances	-£1.222m
Subtotal	£6.696m

Change in funding received for 2021/22

Additional retained business rates	-£0.102m
Lower new homes bonus	£0.489m
Lower other funding	£0.115m

Council tax increase needed for 2021/22

Raised from council tax 2020/21	£7.029m
Amount to be raised from council tax 2021/22	£7.198m
Additional amount raised from council tax	£0.169m