Local government expenditure accounts for about 25% of public spending. Local authorities in Great Britain raise revenue through the council tax, which meets about 25 per cent of their revenue expenditure.

Their spending is, however, financed primarily by grants from central government or the devolved administrations, by the redistribution of revenue within each country from their national non-domestic rate, and a property tax levied on businesses and other non-domestic properties.

Local councils' annual accounts must be audited by independent auditors appointed by the Audit Commission in England and Wales, or in Scotland by the Accounts Commission for Scotland. In Northern Ireland, the chief local government auditor carries out this role. Local electors have a right to inspect the accounts to be audited. They may also ask questions and lodge objections with the auditor.