Council tax bills 2021/2022 - introduction from the Leader

Dear resident,

COVID-19 has had a massive impact on us all. On our health and wellbeing, and on the way we live and work.

The pandemic has touched every aspect of the council’s work, and we will be at the front line as the country recovers. Businesses will need support to get back on their feet, schools will be supporting pupils who have been stuck at home for months and our social care services will help an increasing number of vulnerable residents.

Since 2010, the amount of money we receive from government has reduced significantly. This means that we are facing an estimated £150m pressure on our budgets – that’s over £1,000 per household.

It’s clear that many services will not be the same, and we’ll need to consider a wide range of options, if the government doesn’t provide the support we need. The government’s funding for councils assumes that we will put up council tax by the maximum 4.99%, which is what we are doing this year. For most people that means an increase of around £1.17 per week for a band D property. Even with this increase, we have an £11m shortfall which will mean redesigning services and generating new income to balance our books for 2021/22

But that doesn’t mean we’re not investing in making the borough a better place to live, work and grow up. We’re improving parks and green spaces, work is about to start on the Woolwich Leisure Centre site and hundreds of council homes are under construction as part of our Greenwich Builds programme. We’re also delivering our Carbon Neutral Plan to reach net zero emissions by 2030 – ten years ahead of the national target.

As well as keeping critical services going, we’ve set up new initiatives to support residents and businesses throughout the pandemic. Our Community Hub has helped thousands of residents who are self-isolating to access food and medicines as well as provide financial support. In December we launched Royal Greenwich Together for Winter to provide food boxes and meals for people and families on low incomes. And in February we launched a £3m fund to support our hospitality industry.

Last year we improved our council tax support scheme so if you’re on a low income or claiming benefits your bill could be reduced by up to 100%. Find out more about Council Tax Support

You can also find advice and information on a range of benefits and other forms of financial help on our website.

I would like to remind residents that it’s important that you have your say on the issues that matter to you. Your views will help us build a fairer Royal Greenwich – sign up to our email to find out at about all our consultations.

Lastly, I want to pay tribute to the residents we’ve lost due to this terrible pandemic. With the development of the COVID-19 vaccination programme, I’m hopeful that we can all look forward to better days ahead.

Cllr. Danny Thorpe Leader,

Royal Borough of Greenwich

Where your money goes 2021/22

Where the council gets its money (2021/22)

Government funding £162.2m
Council tax payers £135.9m
   
Total £298.1m

Where the council spends its money (2021/22)

Borough services  £266.4
Greater London Authority (GLA)* £30.1m
Environment Agency (flood defence)** £0.2m
Other levies and special expenses £1.4m
   
Total £298.1m

*The council collects GLA precept on behalf of the GLA from council tax payers. Find out more about the GLA precept.

**The Environment Agency has statutory responsibilities including the management of river defences and flooding and it generates part of its income through a local levy on boroughs. Find out more about the Environment Agency levy.

Services on which money is spent (2021/22)

Childrens Services £89.0m
Health and Adults £99.1m
Regeneration, Enterprise and Skills £6.9m
Communities and Environment £45.0m
Housing and Safer Communities £17.2m
Finance £9.1m
Precepts and other levies £31.7m
   
Total £298.1

See a full breakdown of annual budgets

How government funding has changed

There is a national funding shortage for adult social care. Authorities have been able to charge an additional precept on their council tax of 13% for the period 2016/17 to 2021/22. We have our raised precept by 13% over this period. Find out more about the adult social care precept.

How the council finances its spending - 2021/22

How we finance our spending

We plan to finance expenditure of £271m in 2021/22, made up of:

  • government funding (including new homes bonus) of £131m
  • business rates income of £31m
  • council tax income of £106m
  • a collection fund surplus of £3m.
  Net spending 20/21 (£000) Net spending 21/22 (£000)
Total service expenditure 261,340  269,623
     
Previous years' collection fund surplus (6,195)

(3,253)

Environment Agency flood defence levy 179  182
Other levies and special expenses 1,405  1,378
     
Total expenditure 256,729  267,930
     
Less:    
Government funding (114,936) (124,204)
New homes bonus (11,928) (7,280)
Business rates (28,145) (30,678)
     
Council tax requirement 101,720  105,768
     
Greater London Authority precept 27,782  30,132
     
Total to be met from council tax 129,502  135,900
     
Number of properties subject to council tax 83,665  82,859
     
Council tax per band D property 1547.75  1,640.00

How our spending has changed

The £106m funding received from council tax payers is known as the council tax requirement. This table shows how our council tax requirement has changed from last year.

  £000
20/21 council tax requirement 101,720
   
Agreed budget proposals  5,476
Additional Government Funding (6,076)
Reduction new homes bonus 4,648
   
21/22 council tax requirement 105,768

Changes in your council tax

We also collect the Greater London Authority (GLA) precept of £30m on behalf of the GLA from council tax payers. The table below shows the council tax amounts for a band D household for council services and the GLA.

  20/21 (£) 21/22 (£) % change
Service expenditure 3,123.53 3,214.62  
Government grant (1,926.78) (1,957.11)  
Levies and London wide charges 18.93 18.82  
       
Greenwich council tax  1,215.68 1,267.34 4.99%
       
Greater London Authority precept      332.07 363.66 9.51%
       
Band D council tax    1,547.75  1,640.00 5.96%

 

How the council finances it's spending - 2020/21

How we finance our spending

We plan to finance expenditure of £263m in 2020/21, made up of:

  • government funding (including new homes bonus) of £127m
  • business rates income of £28m
  • council tax income of £102m
  • a collection fund surplus of £6m.
  Net spending 19/20 (£000) Net spending 20/21 (£000)
Total service expenditure 243,828  261,340
     
Capital adjustments 3,328   
Previous years' collection fund surplus (3,868)

(6,195)

Environment Agency flood defence levy 181  179
Other levies and special expenses 1,417  1,405
     
Total expenditure 244,886  256,729
     
Less:    
Government funding (93,946) (114,936)
New homes bonus (11,088) (11,928)
Business rates (42,989) (28,145)
     
Council tax requirement 96,863  101,720
     
Greater London Authority precept 26,553  27,782
     
Total to be met from council tax 123,416  129,502
     
Number of properties subject to Council tax 82,848  83,665
     
Council tax per band D property 1,489.55  1,547.75

How our spending has changed

The £102m funding received from council tax payers is known as the council tax requirement. This table shows how our council tax requirement has changed from last year.

  £000
19/20 council tax requirement 96,863
   
Agreed budget proposals  11,843
Additional social care funds (6,146)
Additional new homes bonus (840)
   
20/21 council tax requirement 101,720

Changes in your council tax

We also collect the Greater London Authority (GLA) precept of £28m on behalf of the GLA from council tax payers. The table below shows the council tax amounts for a band D household for council services and the GLA.

  19/20 (£) 20/21 (£) % change
Service expenditure 2,983.13 3,123.53  
Government grant (1,833.38) (1,926.78)  
Levies and London wide charges 19.29 18.93  
       
Greenwich council tax  1,169.04 1,215.68 3.99%
       
Greater London Authority precept      320.51 332.07 3.61%
       
Band D council tax    1,489.55  1,547.75 3.91%

Where your money goes 2020/21

Where the council gets its money (2020/21)

Government funding £155m
Council tax payers £129.5m
   
Total £284.5m

Where the council spends its money (2020/21)

Borough services  £255.1
Greater London Authority (GLA)* £27.8m
Environment Agency (flood defence)** £0.2m
Other levies and special expenses £1.4m
   
Total £284.5m

*The council collects the GLA precept on behalf of the GLA from council tax payers. Find out more about the GLA precept.

**The Environment Agency has statutory responsibilities including the management of river defences and flooding and it generates part of its income through a local levy on boroughs. Find out more about the Environment Agency levy.

Services on which money is spent (2020/21)

Childrens Services £88.8m
Health and Adults £87.5m
Regeneration, Enterprise and Skills £15.1m
Communities and Environment £29.6m
Housing and Safer Communities £15m
Finance £19.1m
Precepts and other levies £28.2m
   
Total £284.5

See a full breakdown of annual budgets

How government funding has changed

Since 2010, the amount of money we receive from government has reduced by over £130million and our costs have risen due to inflation and because more people need to use our services. 

There is a national funding shortage for adult social care. Authorities have been able to charge an additional precept on their council tax of 10% for the period 2016/17 to 2020/21. We have our raised precept by 10% over this period. Find out more about the adult social care precept.

Adult social care additional charge

2016-2020

The Secretary of State for Communities and Local Government has made an offer to adult social care authorities. (“Adult social care authorities” are local authorities which have functions under Part 1 of the Care Act 2014, namely county councils in England, district councils for an area in England for which there is no county council, London borough councils, the Common Council of the City of London and the Council of the Isles of Scilly.)

The offer is the option of an adult social care authority being able to charge an additional “precept” on its council tax for financial years from the financial year beginning in 2016 without holding a referendum, to assist the authority in meeting expenditure on adult social care. Subject to the annual approval of the House of Commons, the Secretary of State intends to offer the option of charging this “precept” at an appropriate level in each financial year up to and including the financial year 2019-20.

2020 onwards

The Secretary of State made an offer to adult social care authorities. (“Adult social care authorities” are local authorities which have functions under Part 1 of the Care Act 2014, namely county councils in England, district councils for an area in England for which there is no county council, London borough councils, the Common Council of the City of London and the Council of the Isles of Scilly.)

The offer was the option of an adult social care authority being able to charge an additional “precept” on its council tax without holding a referendum, to assist the authority in meeting its expenditure on adult social care from the financial year 2016-17. It was originally made in respect of the financial years up to and including 2019-20. If the Secretary of State chooses to renew this offer in respect of a particular financial year, this is subject to the approval of the House of Commons.”.