Seven local councils have received approval to raise their council tax by more than 5%. Typically, councils in England can increase council tax up to 5% without a referendum, but larger increases require a public vote. Shropshire, Worcestershire, and North Somerset councils are allowed to raise their portion by up to 9%, while Trafford, Warrington, Windsor, Maidenhead, and Bournemouth, Christchurch, Poole Council can increase theirs by 7.5% and 6.75%, respectively.
Council tax rates usually rise each April, with the average Band D council tax in England for 2025/26 standing at around £2,381. This decision follows the government’s announcement of a three-year financial settlement for local authorities, providing approximately £78 billion in funding across England.
To address funding cuts affecting councils significantly, a targeted investment of £440 million through a Recovery Grant uplift will assist the most impacted councils. By 2028/29, a total of £2.6 billion will be allocated through the Recovery Grant.
Local government minister Alison McGovern emphasized that the reforms aim to allocate funds where needed most, acknowledging the financial challenges some councils face due to past systems. She emphasized that the flexibility granted on council tax increases is a limit, not a mandate, leaving the decisions on tax levels to local authorities.
Many individuals miss out on potential council tax discounts, ranging from 25% to 100%, depending on personal circumstances and living arrangements. For instance, living alone entitles one to a 25% discount, while a 100% discount can be given to individuals with severe mental impairments living alone or in all-student households. Contacting your council directly can help determine applicable discounts.
Council Tax Support or Council Tax Reduction schemes are available for benefit claimants or those with low incomes, potentially leading to a full bill exemption. Each council administers its scheme, so eligibility criteria and discounts vary by location.
Moreover, challenging your council tax band could result in substantial refunds if your property is in an incorrect category, potentially reducing future bills. However, research is crucial as being in a lower band than appropriate could lead to higher payments if reclassified. Neighbors might also be impacted by such changes.
