Funding
Local councils are funded by a combination of central government grants, Council Tax (a locally set tax based on house value), Business Rates, and fees and charges from certain services including decriminalised parking enforcement. The proportion of revenue that comes from Council Tax is low, meaning that if a council wishes to increase its funding modestly, it has to put up Council Tax by a large amount. Central government retains the right to "cap" Council Tax if it deems it to be too much. This is an area of debate in British politics at the moment, with councils and central government blaming each other for council tax rises.
Council Tax is collected by the district-level council. Authorities such as the GLA, parish councils, county councils, passenger transport authorities, fire authorities, police authorities and national parks authorities can make a precept. This shows up as an independent element on council tax bills, but is collected by the district and funnelled to the precepting authority. Some joint ventures are instead funded by levy.
Read more about this topic: Local Government In England