Seven local councils have received approval to raise their council tax by more than 5%, surpassing the usual 5% limit set for councils in England. Shropshire, Worcestershire, and North Somerset councils can increase their share by a maximum of 9%, while Trafford, Warrington, Windsor and Maidenhead councils can raise theirs by up to 7.5%. Bournemouth, Christchurch, and Poole Council have been permitted to raise their share by 6.75%.
Typically, council tax rates increase annually in 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 settlement for local authorities, providing approximately £78 billion in funding to town halls across England.
To aid councils facing funding cuts, a targeted investment of £440 million through a Recovery Grant uplift has been allocated, with a total of £2.6 billion expected to be available under the Recovery Grant by 2028/29. Local government minister Alison McGovern emphasized that the additional flexibility in council tax increases is a limit, not a target, leaving decisions on tax levels to local authorities.
Many individuals are missing out on council tax discounts, ranging from 25% to 100% based on personal circumstances and living arrangements. Discounts like Council Tax Support or Council Tax Reduction are available for those claiming benefits or on low incomes, potentially leading to full bill exemptions in some cases. Eligibility criteria and available discounts vary by council, so contacting the local council directly is advised to explore potential savings.
Moreover, homeowners may challenge their council tax band if they suspect an incorrect categorization, potentially resulting in refunds and lower future bills. However, researching thoroughly is crucial, as an upward band adjustment could lead to higher payments and impact neighbors as well.