Seven local councils have received approval to raise their council tax by more than 5%. Typically limited to a 5% increase without a referendum, councils in England such as Shropshire, Worcestershire, and North Somerset have been granted the ability to raise their share by a maximum of 9%. Additionally, Trafford, Warrington, and Windsor and Maidenhead councils can increase their share by up to 7.5%, while Bournemouth, Christchurch, and Poole Council can raise their share by up to 6.75%.
Council tax adjustments usually occur annually in April. The average Band D council tax in England for the 2025/26 fiscal year stands at around £2,381. This decision follows the government’s allocation of approximately £78 billion over three years to support local authorities across England.
Notably, local councils facing financial challenges due to funding cuts will benefit from targeted investments through a £440 million Recovery Grant uplift, with a total of £2.6 billion expected to be disbursed 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 are within the purview of local authorities. Many individuals are missing out on potential council tax discounts, ranging from 25% to 100%, based on individual circumstances and living arrangements.
For instance, individuals living alone are entitled to a 25% discount, while those with severe mental impairments living alone or in all-student households may receive a 100% discount. Residents are encouraged to contact their local council directly to inquire about applicable discounts.
Various schemes like Council Tax Support or Council Tax Reduction are available for individuals claiming benefits or with low incomes, potentially leading to a full exemption from council tax bills. Eligibility criteria and available discounts vary among councils due to the operation of their respective schemes.
Furthermore, homeowners are advised to review their council tax banding, as numerous properties may be incorrectly categorized. Reassessment could result in refunds and reduced future bills, although caution is advised to prevent potential bill increases if a property is reclassified into a higher band. Neighbors may also be impacted by such adjustments.