Financial targets are set for all the areas of activity that are undertaken by the County Council. Day-to-day expenditure and income are referred to as revenue, and investment in assets is referred to as capital.

Elected members approve all budgets of the Authority and throughout the year monitoring of expenditure and income is undertaken to ensure that spending remains under control.

The funding for the budget currently comes from several sources including Council Tax, business rates, government grants, and fees and charges.

The Core Spending Power increase for Devon County Council is below the national average of 6% (6.81% in the Final Settlement), and the lowest increase of all 21 county councils in England.

This reflects a shift in government policy which no longer applies rurality as a measure of service cost or demand, instead targeting existing and new funding to areas with more concentrated levels of deprivation and less ability to raise funding through Council Tax.

This is particularly detrimental for Devon as felt through the loss of Rural Services Delivery Grant in 2025/26, which in 2024/25 provides more than £10 million in grant towards the additional costs of delivering services in more rural areas.

Infographic showing the Council's spending plans for 2025/26 compared to 2024/25.

The less than favourable Settlement is not enough for the Authority to set a balanced budget for 2025/26 without making budget savings and generating additional income, with inflation, national living wage together with demand for services driving cost increases well above the increase in available funding. Savings and new income of £21.7 million are reflected within service budgets to ensure services remain affordable.

The budget process continues to build on the Financial Sustainability Programme undertaken towards the preparation of the 2023/24 budget and the Working Well Together for a Sustainable and Stronger Council objectives and action areas as agreed by Cabinet in September 2023. The approach aims to secure Best Value and ensure ongoing financial sustainability.

Delivery of the savings and the improvements in services through change programmes will not be easy but the level of commitment from teams working together as one organisation and the level of assurance gained through the rigorous budget process provide confidence in delivering within financial targets.

Budget

Revenue and capital outturn

Devon County Council is a precepting authority and does not administrate Council Tax. Enquiries about payments, rebates or benefits should be made to your district or city council.

More information

Council Tax

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