Council Tax Precept – What is it? (Updated)
As we come up to the new financial year, we're getting our council tax bills from North Yorkshire Council. There is an element in there called the Parish Council Precept, but what is it and what's it for? Read on to see what it is, how it works and where the money gets spent...
Published: 25 March 2025
Parish Precept
What it is:
The precept is essentially a demand for a specific sum of money to be collected through the council tax system, which the parish council then uses to fund its operations.
How it works:
- Parish council prepares a budget and determines how much funding they need for the upcoming year.
- They then submit a precept request to the billing authority (North Yorkshire Council).
- North Yorkshire Council collects the precept amount as part of the council tax and pays it to the parish council.
Why it’s important:
Parish councils rely on the precept as their primary source of funding, as they do not receive direct funding from central government. Without the precept, they would be unable to carry out their responsibilities, such as maintaining local amenities, providing services, and representing the community.
Bishop Monkton Parish Council, sets a precept amount each year, which is then included in the council tax bills of residents in the parish based on the annual budget. The budget for 2025/26 was was approved at the December meeting and it comes out to 7.19%. Whilst that looks like a large percentage increase, it works out to £2.11 for a Band D property. The increase for 2025/26 was the first for 3 years and took into account, inflation as well as increase in costs for services, goods and materials, and employment during that timeframe.
The budget essentially covers:
- Parish Council Administration. e.g. employment costs, office supplies and equipment, website/IT, insurance, room hire, training, fees/memberships
- Maintenance. e.g. grass cutting, assets, floods
- Projects e.g. Christmas, speed calming, signage
Other sources of income:
In addition to the precept, parish councils may also receive income from other sources, such as grants, donations, or income from services or facilities they provide.