Understanding the parish council element of council tax
The total amount of money the parish council raises through council tax is called the precept, which is set through a detailed budgeting process. In essence, where you appear on the list for parish-council-portion of council tax relates to:
- The number of assets/services a parish council offers, versus
- The number of households in the parish (usually one village) contributing to the precept
There is significant variation in both factors across different parishes. Some councils have inherited or built up a large number of assets and services, while others have historically taken on fewer responsibilities. Additionally, the number of contributing households varies widely; smaller villages with fewer taxpayers will naturally have a higher tax contribution if the council is maintaining essential services.
According to The Good Councillor’s Guide to Finance & Transparency: “Local electors will often be prepared to contribute more for tangible local community benefits, rather than pay an amount where it appears that the council is not active on behalf of the community and is merely administering itself.”
Unless a parish council receives external funding, such as those that come along with development, you have three options:
- Raise enough money through tax to maintain or improve assets and services.
- Keep taxes low and remove or reduce services as assets reach the end of their lifespan.
- Take out a loan to maintain or replace assets, increasing the precept at a later date to cover repayments and interest.
Many councils consider option 1 to be the most prudent, ensuring that key facilities remain safe and well-maintained without accumulating debt.
Harrold 2025/26
The parish council carefully reviewed and approved the budget for 2025/26, setting the total budget/precept at £100,070. This decision followed a detailed discussion on key cost increases, including:
- Higher employment costs due to government changes to National Insurance contributions
- Rising grass-cutting expenses
- A new budget allocation for maintaining the cemetery to a higher standard following requests from residents.
Further, a key priority in this year’s budget is strengthening the council’s reserves to ensure the long-term maintenance and replacement of Harrold’s valued community and heritage assets. These include the following Grade 2 listed structures: the Buttermarket, the Lockup (a Scheduled Monument that is due structural works in 2025), and the granite war memorial. Other assets include the historic lych gate and village clock, three playgrounds, skatepark, outdoor gym, streetlights, benches and more. Taking a prudent approach to financial planning will help keep these important facilities safe and well-maintained for years to come. The parish council also employs a Street Ranger to empty bins, litterpick, and clear the village brook of vegetation and silt; all of which is necessary in a busy village.
For an “average” Band D household in Harrold, the total 2025/26 council tax bill will be £2,433.36, covering borough services, policing, fire services, and the parish council. The parish council’s share of that will be £140.83 for the year – an increase of £10.43 (8%), or under £1 per month per household.