How we spend our budget
The council spends around £1.2 billion each year across council services, our housing stock and capital programme.
Ring fenced money
Much of this money is ring fenced, such as:
- around £130 million for schools
- £83 million for housing benefit payments
- £140 million for services for council tenants
That ring fenced money can only be spend on the things that is given to us for - so we can't spend ring fenced money for schools on fixing roads, or housing benefits on bin collections.
Revenue and capital spending
The rest of our budget is used for our wide range of statutory responsibilities - the things we must do by law - and to meet the needs of our residents, communities and city.
This spending is separated into two types:
- Revenue expenditure - money used to deliver day to day services such as refuse collection and caring for vulnerable people
- Capital expenditure - money used for buying, updating or improving physical assets like buildings or roads
In 2025 to 2026 we budgeted to spend £773 million on day to day public services and invest £183 million in capital projects such as roads and housing.
Of that "day to day" budget we spend:
- 55 percent on social care
- 18 percent on education
- 8 percent on environmental and regulatory services
- 7 percent on public health
- 5 percent on roads, highways and transport
- 2 percent on housing services
- 2 percent on central services
- 2 percent on cultural and related services
- 1 percent on planning and development services
The £684 million comes from:
- income of £480 million from specific grants, sales, fees and charges and other contributions.
- £293 million, which is paid for from a combination of things like general Government grants and council tax.
For more information see: