Seven councils have received approval to raise their council tax by more than 5%. In England, councils are typically allowed a maximum 5% increase without a referendum, but Shropshire, Worcestershire, North Somerset, Trafford, Warrington, Windsor, Maidenhead, and Bournemouth, Christchurch, Poole Council have been granted permission for higher increases ranging from 6.75% to 9%.
Council tax adjustments usually occur annually in April, with the average Band D council tax in England for 2025/26 estimated at around £2,381. This decision follows the Government’s allocation of approximately £78 billion over three years to local authorities across England.
A targeted investment of £440 million through the Recovery Grant uplift will benefit councils most affected by funding cuts, with a total of £2.6 billion expected through the Recovery Grant by 2028/29. Local government minister Alison McGovern emphasized that the additional flexibilities are limits rather than targets, allowing councils to decide on tax levels independently.
Many individuals are unaware of potential council tax discounts ranging from 25% to 100%, depending on personal circumstances. Discounts apply to various scenarios, such as living alone, having a severe mental impairment and living alone, or residing in an all-student household. Contacting the local council directly can provide clarity on applicable discounts.
Council Tax Support or Council Tax Reduction schemes offer assistance to benefit claimants or those with low incomes, potentially leading to a complete bill waiver. Each council administers its own scheme, leading to variations in available discounts and eligibility criteria based on location.
Furthermore, challenging the council tax banding can result in refunds and reduced future bills if a property is found to be in the wrong category. Research is essential before challenging the banding to avoid potential increased payments or affecting neighbors in case of band adjustments.