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% without a referendum. However, Shropshire, Worcestershire, and North Somerset councils can now raise their portion by a maximum of 9%. Additionally, Trafford, Warrington, and Windsor and Maidenhead have been granted permission to increase their share by up to 7.5%, while 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 standing at around £2,381. This decision follows the government’s announcement of a three-year settlement, providing approximately £78 billion to local authorities across England.
Notably, councils facing significant funding cuts will benefit from targeted investments 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 limits rather than targets, leaving decisions on council tax levels to local authorities.
Many individuals are unaware of potential council tax discounts, ranging from 25% to 100%, depending on personal circumstances and living arrangements. For instance, living alone entitles one to a 25% discount, while a 100% discount can be received by those with severe mental impairments living alone or in all-student households. Residents are encouraged to contact their council directly to inquire about applicable discounts.
Furthermore, Council Tax Support or Council Tax Reduction schemes are available for individuals claiming benefits or on low incomes, potentially resulting in a full bill waiver. Eligibility criteria and available discounts vary among councils as each administers its own scheme.
Lastly, homeowners may challenge their council tax banding if they suspect it is incorrect, which could lead to substantial refunds and lower future bills. However, thorough research is advised as being placed in a higher band could increase payments, affecting neighbors as well.