When council tax changes are announced, attention often focuses on percentages. A “10% increase” can sound significant.

Percentages are useful, but they do not always explain the full financial picture — especially when different levels of local government operate at very different scales and under different funding structures.

To understand council tax properly, it helps to look at scale, income sources, service responsibilities and financial resilience alongside percentage change.

Understanding how local government is funded helps residents make informed decisions, ask meaningful questions and hold elected representatives to account. Transparency in public finance benefits everyone.

Different Levels, Different Scales

For 2026/27, the Precept Table shows:

• Kent County Council: £1,758.60
• Police & Crime Commissioner: £285.15
• Fire & Rescue Authority: £99.81
• Dartford Borough Council: £188.64

Parish and town council charges range from around £14 to £141.

The largest share of the total council tax bill therefore comes from county and principal authorities. Parish and town councils form a comparatively small part of the overall charge.

When starting figures differ significantly, percentage comparisons can appear more dramatic at the smaller end simply because the base figure is lower.

For example, a 4% increase on £1,700 results in a much larger cash increase than a 10% increase on £30. Residents experience changes in pounds as well as percentages.

The Five-Year Picture

Since 2021/22:

• Kent County Council has increased by £339.84.
• Stone Parish Council has increased by £36.96.
• Southfleet Parish Council has increased by £0.52.

Looking at both the percentage and the actual cash change provides a clearer sense of overall impact.

Our 2026–27 Precept

For 2026–27, the council tax base for Stone Parish has been confirmed at 4,627.35 properties. The Parish Council has set a precept of £654,631.

This results in an annual charge of £141.47 for a Band D property, representing an increase of £12 per year.

Full details of the 2026–27 budget will be published shortly, setting out how income from the precept and services will be allocated across local priorities.

How Parish and Town Councils Are Funded

Parish and town councils have a much narrower income base than larger authorities.

Their main income sources are:

• The Precept (their share of council tax)
• Service income (such as café revenue, room hire, events or facility fees)

Unlike county and district authorities, parish and town councils:

• Receive no general government grant funding
• Do not retain business rates
• Have limited alternative revenue streams

This means their budgets are smaller and more concentrated.

Service Provision and Financial Sensitivity

Many parish and town councils deliver direct local services — managing parks, maintaining open spaces, operating community facilities and hosting events.

These services benefit residents but also introduce financial exposure, as income can fluctuate due to weather, economic conditions, visitor numbers or unexpected closures.

When income varies, it must be managed within a relatively modest overall budget. This adds an additional layer of financial sensitivity at parish level.

Local Representation and Decision-Making

Parish and town councils are the closest tier of local government to residents. Decisions about projects, facilities and services are made by locally elected councillors.

Where a community supports a specific project, such as improving facilities or investing in infrastructure, this can result in a higher percentage precept change because the starting base is smaller.

In these circumstances, percentage movement reflects a local democratic choice about priorities and investment and is therefore a positive change.

Understanding Reserves

As of 11 February 2026, Stone Parish Council’s balance sheet shows total net assets of £1.35 million.

However, most of this is restricted funding.

Of the £1.44 million held in cash at bank:

• £1.326 million relates to CIL (Community Infrastructure Levy).

CIL can only be used for infrastructure projects and cannot fund day-to-day running costs.

Importantly, this funding is already allocated to active infrastructure projects, including the Stone Recreation Ground masterplan in response to local development. As these projects are delivered, the balances reduce.

The unrestricted General Fund investment holding is £70,000. This represents the flexible reserve available to manage unexpected costs or income fluctuations.

This illustrates how headline reserve figures can appear substantial, while the amount available for general financial resilience is much smaller.

How Growth and Development Play a Part

In high-growth areas, larger authorities may benefit over time from:

• New Homes Bonus
• Business rate growth
• Development-related income
• Investment income from larger reserve balances

Parish and town councils receive a share of CIL for infrastructure projects.

Stone Parish Council produced a Neighbourhood Plan to secure a 25% share of CIL, rather than the lower statutory 15% allocated without a plan. This helps maximise infrastructure funding to mitigate local growth, but crucially, it remains restricted to capital use.

Meanwhile, population growth increases demand for local services, often delivered at parish level.

Financial Resilience at Different Scales

Larger authorities operate at budgets in the tens or hundreds of millions of pounds and typically hold reserves at a much greater scale.

At parish level, budgets are far smaller. Unexpected costs and income fluctuations therefore represent a larger proportion of annual resources, and unrestricted reserves are comparatively modest.

This reflects structural scale and funding design, not inefficiency.

Keeping a Balanced Perspective

Percentages remain a valid way to describe change.

But when comparing different tiers of local government, it is helpful to consider alongside them:

• The cash increase in pounds
• The authority’s starting level
• The proportion of the total council tax bill
• The range of income sources available
• The flexibility of reserves
• The scale of service provision

Looking at these factors together provides a fuller and more balanced understanding of how local government finance works.

Key Facts at a Glance

✔ Parish and town councils form a small proportion of the total council tax bill.
✔ Percentages look larger when starting figures are smaller.
✔ Parish and town councils receive no general government grant funding.
✔ Main income sources are the precept and service income.
✔ Service income can fluctuate, increasing financial sensitivity.
✔ Most of Stone Parish Council’s £1.35m net assets are restricted CIL funds.
✔ Around £70,000 is held as flexible general reserves.
✔ CIL funding is allocated to active infrastructure projects.

Understanding council tax means looking at pounds, percentages, funding structure and financial resilience together.