Where does UK Government’s money come from?

In 2008/09 the source of the UK Government’s money was as follows:

Income Tax – 28%

National Insurance – 17%

Excise Duty 7%

Corporation Tax – 9%

Council Tax – 4%

VAT – 15%

Business Rates – 4%

Other – 15% (capital taxes; stamp duties; vehicle excise, etc)

Total Tax Receipts (Projected) = £575 billion

Local Authorities receive £10.8 bn from chargeable services, and 30% of them get more from these chargeable services than they get from Council Tax.

Being related to 2008-09 these figures are obviously a bit out of date, but it is instructive to see how little of UK Local Authorities’ income comes from Council Tax.

Some people and bodies are saying that Local Authorities need to be responsible for raising more of their own money – but I think the above figures show that for this to happen implies either a huge increase in overall tax or central Government giving up a large chunk of the money which they collect and take centrally. Is this really going to happen?

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