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.
Bletsoe 2025/26
Councillors reviewed and updated the budget for 2025/26 in line with current costs. An increase in the precept was necessary, primarily due to the cost of employing a contractor to cut the village hall field, following a decline in the number of volunteers who previously maintained it. The council believes that residents value having a usable village field for dog walking and recreation rather than allowing it to become overgrown.
Bletsoe is a good example of how a parish can appear near the top of the list for parish council tax, even with a relatively small increase in the budget. This is due to the low number of households (around 120) contributing to the precept.
The precept has increased from £12,978 to £14,533 for the year. For a Band D household in Bletsoe, the total council tax bill for 2025/26 will be £2,410.51, covering borough services, policing, fire services, and the parish council. The parish council’s share of that will be £117.98; an increase of £12.62 (12%) for the whole year, which equates to just over £1 more per month.