The twenty two local authorities in Wales receives the majority of their funding in the form of a revenue grant from the Welsh Assembly Government known as the Revenue Support Grant (RSG). This grant is unhypothecated which means that local authorities decide how it should be spent according to their needs and priorities.They also receive some unhpothecated capital funding as well as a number of ring fenced grants, both revenue and capital, which must be spent on specific activities.
Local authorities also receive income from Non Domestic Rates, a national tax which is collected locally and further income comes from Council Tax, fees and charges as well as income from investments.
For more information contact: Mari Thomas