Budget Terminlogy

Plan in financial terms

Cost of day to day expenses, eg wages, running costs, gas electric, fuel, contract payments, goods and services.

The Councils budget for the next 4 years

Expenditure that creates, extends the life, or value of an asset.

Large Government grant paid to Councils to fund the cost of schools (excludes academies)

Removal or reduction in the service provided by the Council

Income to the Council raised from Council Tax payers in the town

Money paid from the Government to the Council to fund Council services

The mortgage and interest payments made by the Council to pay for the assets it buys

The additional money put into Council services to provide more or new services.

Cost to the Council for computing, financial services, legal services, human resources, property

The requirement to provide services at the best cost at the required quality

The services which the Council sees as the most important to the town

The financial targets set by the Government on the Council to achieve value for money 3% to 4% per year

The rising cost of pay and goods and services

The difference between what the Council needs to spend and the income it has to pay for the spend.

The savings the Council has set aside to meet unexpected costs.

The money the Council has set aside to meet costs it knows are going to happen in the future.

Issues and projects that could have a financial impact on the council because of their size or uncertainty