Council tax is a local tax collected by councils. Its purpose is to fund services provided to people who live in the council’s area, such as refuse collection and street lights, pay for the upkeep of public buildings, footpaths and roads; to subsidize public transport (buses or trains) near where people live. The amount of council tax you pay depends on the value of your home (in this case, your external housing) – it’s not based on how much you earn. Council Tax bands are split into 8 groups with each one having its own charge that homeowners must pay depending on their house valuation within that group. The charge changes over time as prices change due to inflation.