Seven local councils have received approval to raise their council tax by more than 5%. Typically, councils in England can increase council tax by up to 5% without a referendum. However, Shropshire, Worcestershire, North Somerset, Trafford, Warrington, Windsor and Maidenhead, and Bournemouth, Christchurch, and Poole Council have been granted permission to increase their shares by varying percentages, with the highest being 9%.
Council tax rates usually see an annual rise in April. The average Band D council tax in England for the 2025/26 period is around £2,381. This decision follows the Government’s allocation of approximately £78 billion over three years to local authorities across England.
To address funding cuts, councils facing challenges will receive targeted investment through a £440 million Recovery Grant uplift, with a total of £2.6 billion expected through the Recovery Grant by 2028/29. Local government minister Alison McGovern emphasized that these additional flexibilities are limits, not targets, and that decisions on council tax levels are the responsibility of local authorities.
Many individuals are missing out on potential council tax discounts, ranging from 25% to 100%, based on personal circumstances and household compositions. Eligibility for discounts varies, such as a 25% discount for individuals living alone and a 100% discount for those with severe mental impairments or residing in all-student households. Residents are advised to contact their council directly to inquire about applicable discounts.
Council Tax Support or Council Tax Reduction schemes are available for individuals claiming benefits or with low incomes, potentially resulting in a full bill discount. Each council administers its scheme with varying eligibility criteria based on location.
Moreover, homeowners may challenge their council tax band if they suspect it is incorrect, potentially leading to a refund and lower future bills. However, it is crucial to research thoroughly before challenging the banding, as an incorrect adjustment could result in higher payments and impact neighbors as well.
