In February each year, the council is required to set a budget for day-to-day expenditure for the financial year starting on 1st April. This is called the revenue budget and is the amount of money the council needs to provides its services during the year.
It is a legal requirement for the council to set a balanced budget, the expenditure cannot be more than the council's income.
The council sets a capital budget each year which sets out the cost of the capital programme for the forthcoming years.
The capital programme is an agreed list of capital projects that are usually of a "one-off" nature and the expenditure typically happens over more than one financial year. Capital expenditure results in the construction, acquisition or improvement of an asset such as a building or other community facility.
Capital expenditure is paid for using money the council has saved in previous years, the proceeds from selling council assets such as surplus land or buildings (capital receipts), interest received on investments, contributions from building developers and specific government grants.
In addition, the council is required to keep a separate Accounts for Housing Services called the Housing Revenue Account (HRA).
The budget for both the General Funding and the Housing Revenue Account are below.