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. However, Shropshire, Worcestershire, and North Somerset have been permitted to raise their share by a maximum of 9%. Additionally, Trafford, Warrington, and Windsor and Maidenhead can 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 rates usually see an annual rise 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 providing approximately £78 billion to local authorities across England.
Furthermore, councils facing significant funding cuts will benefit from 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 rather than targets, leaving decisions on council 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. To explore potential discounts, individuals should reach out directly to their council. Schemes like Council Tax Support or Council Tax Reduction are available for those claiming benefits or with low incomes, offering potential bill reductions up to 100%. Council tax band challenges are also possible, potentially leading to refunds and lower future bills, although thorough research is needed to avoid unintended consequences for oneself and neighbors.