How the budget works

The council is legally required to set a balanced budget. The budget must show how much money the council will be able to spend on services and how it intends to generate the necessary funds to support these plans.

The council's budget is divided into two main areas - revenue and capital. 

Revenue Budget 

The council's revenue budget relates to the day-to-day expenditure for the delivery of essential services, that most people use. These include:

Council budgets are funded through a variety of different revenue streams. With significant funding cuts from Central Government over the last 14 years, council tax and business rates income have become increasingly vital sources of revenue for local authorities. The new government has recognised the challenges faced by local authorities and is providing additional resources which will help to address the significant demand pressures, particularly within Children and Adult Social Care. 

Capital Budget 

The council's capital expenditure funds long-term regeneration and infrastructure projects such as highways improvements and works to public buildings. The capital budget is funded predominantly by external grants and long-term borrowing, but the interest cost and the repayment of the debt fall on revenue and impact on council tax levels. 

The council's indicative capital programme is approximately £150 million over the next two years. This programme represents significant investment in the borough, including over £80 million dedicated to the regeneration of St Helens Town Centre including the construction of the Town's new, modern multi-modal transport interchange. 

Currently, the council has budgeted to spend £146 million in 2024/25, with substantial investments in local transport networks and town centres.  

The council cannot use capital funds for daily operations due to government rules. The video above explains the difference between revenue and capital budgets in more detail.