Seven councils have been granted approval to raise their council tax by more than 5%. In England, councils can typically increase council tax by up to 5% without a referendum. However, Shropshire, Worcestershire, and North Somerset councils are allowed to raise their share by a maximum of 9%. Meanwhile, Trafford, Warrington, and Windsor and Maidenhead councils can increase their share by up to 7.5%, and Bournemouth, Christchurch, and Poole Council can raise its share by up to 6.75%.
Council tax usually sees an annual increase every April, with the average Band D council tax in England for 2025/26 estimated at around £2,381. The recent announcement by the Government includes a three-year settlement for local authorities, providing approximately £78 billion to town halls across England.
Among the measures announced, councils most affected by funding cuts will benefit from targeted investment through a £440 million Recovery Grant uplift, with a total of £2.6 billion to be made available through the Recovery Grant by 2028/29. Local government minister Alison McGovern emphasized that the additional flexibilities granted are a limit, not a mandate, leaving decisions on council tax levels to local authorities.
Many individuals are unaware of council tax discounts, which can range from 25% to 100% based on personal circumstances and living arrangements. For instance, those living alone are entitled to a 25% reduction, while a 100% discount may be granted to individuals with severe mental impairments living alone or residing in an all-student household. Contacting the council directly can help determine if any discounts apply to a specific household.
Council Tax Support or Council Tax Reduction schemes are accessible for individuals claiming benefits or with low incomes, potentially leading to a full exemption from the tax. Each council administers its scheme, meaning the available discounts and eligibility criteria vary by location.
Furthermore, homeowners may challenge their council tax band if they suspect it is incorrect, as many properties are believed to be in the wrong category. Adjusting to the correct band can result in refunds and lower future bills, although thorough research is crucial to avoid potential higher payments if moved to a higher band. This adjustment might also impact neighboring properties if undertaken.