Seven councils have received approval to raise their council tax by more than 5%. In England, councils can typically increase council tax by up to 5%, requiring a referendum for larger hikes. Shropshire, Worcestershire, and North Somerset councils can raise their share by a maximum of 9%. Trafford, Warrington, and Windsor and Maidenhead have permission for up to a 7.5% increase, while Bournemouth, Christchurch, and Poole Council can raise their share by up to 6.75%.
The average Band D council tax in England for 2025/26 is approximately £2,381, with annual increases usually taking effect in April. The UK government has allocated a three-year settlement of around £78 billion to support local authorities nationwide.
A £440 million Recovery Grant uplift will target councils most affected by funding cuts, with £2.6 billion set to be available through the Recovery Grant by 2028/29. Local government minister Alison McGovern stated that the finance reforms aim to distribute funds where needed, acknowledging the financial challenges some councils face due to past systems. She emphasized that the flexibility in council tax decisions is a limit, not a target, and these decisions are under the purview of local authorities.
Many individuals are missing out on council tax discounts, which can range from 25% to 100% based on personal circumstances and living arrangements. For instance, individuals living alone are entitled to a 25% discount, while those with severe mental impairments or living in all-student households can receive a 100% discount. Residents should contact their council directly to explore potential discounts.
Council Tax Support or Council Tax Reduction schemes are available for benefit claimants or those with low incomes, potentially offering a full bill discount. Eligibility criteria and available discounts vary by council, so it is advisable to check with local authorities. Homeowners can also challenge their council tax banding, potentially resulting in refunds and lower future bills. However, thorough research is essential to avoid unintended consequences, such as increased payments or impacts on neighbors.