Where our money comes from
The council spends around £400 million providing services for residents and businesses in Herefordshire and we fund the expenditure from a variety of sources.
Explanation of funding streams
Business rates: We have a legal duty to collect business rates and retain 49 percent of the amount collected. 50 percent of the rates collected are paid to central government and the remaining 1 percent is paid to Hereford and Worcester Fire Authority.
Council Tax: In addition to funding our services, the Council Tax that we collect supports Hereford and Worcester Fire and Rescue Authority, West Mercia Police and parish and town councils.
Grant income: Funding that is awarded from government departments and other non-government organisations to support services to Herefordshire residents.
Reserves: Funding that has been set aside from previous years to help fund expenditure in future years.
Revenue Support Grant: Grant from central government to support the provision of our services. This has seen a reduction from £60.1m in 2011/12 to £1.05m in 2024/25.
Service area funding: Income received for specific areas such as the Dedicated Schools Grant for funding our schools, Better Care Fund for funding services to vulnerable people and income generated through charging for certain services.