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, but those wanting a higher increase must hold a vote. Shropshire, Worcestershire, and North Somerset councils can now elevate their portion by a maximum of 9%. Similarly, Trafford, Warrington, and Windsor and Maidenhead have been given the go-ahead to raise their share by up to 7.5%, while Bournemouth, Christchurch, and Poole Council can increase their share by up to 6.75%.
Council tax adjustments usually take effect every April, with the average Band D council tax in England for 2025/26 estimated at around £2,381. This decision follows the government’s announcement of a three-year settlement for local authorities, providing approximately £78 billion to town halls across England.
Moreover, councils facing significant funding cuts will receive targeted investment through a £440 million Recovery Grant uplift, with a total of £2.6 billion expected to be available through the Recovery Grant by 2028/29. Local government minister Alison McGovern emphasized that the additional flexibilities granted are limits, not targets, and that decisions on council tax levels remain within the authority of local councils.
Additionally, millions of individuals are not taking advantage of council tax discounts, which can range from 25% to 100% based on personal circumstances and living arrangements. Eligibility for discounts can be confirmed by contacting the local council directly. Furthermore, Council Tax Support or Council Tax Reduction schemes are accessible for those on benefits or low incomes, potentially providing a full bill waiver. Each council administers its own scheme with varying discounts and eligibility criteria.
Lastly, homeowners may challenge their council tax banding if they suspect it is incorrect, as many properties may be in the wrong category. Correcting an inaccurate banding not only results in potential refunds but also lowers future bills. However, thorough research is necessary before challenging the banding to avoid unintended consequences, as neighboring properties could also be affected by any changes.