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. These typically include government grants, council tax, business rates, and fees and charges for services.

However, many of these income streams are subject to external pressures, such as changes in national policy, economic fluctuations, or shifts in local demand, which can impact the council's ability to plan and deliver services effectively. As a result, maintaining a balanced and sustainable budget requires careful financial planning and regular reassessment of priorities.

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 must be paid from the revenue budget and impact on council tax levels.

The council's indicative capital programme is approximately £221 million over 2025/26 and 2026/27. This programme represents significant investment in the Borough, including over £80 million dedicated to the regeneration of St Helens Town Centre and the construction of the town's new, modern multi-modal transport interchange.

Currently, the council has budgeted to spend £109 million in 2025/26, 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 below explains the difference between revenue and capital budgets in more detail.