Seven councils have received approval to raise their council tax by more than 5%. Typically, English councils can increase council tax by up to 5% without a referendum, but these councils have been granted permission for higher increases. Shropshire, Worcestershire, and North Somerset councils can raise their share by a maximum of 9%. Trafford, Warrington, and Windsor and Maidenhead are allowed increases of up to 7.5%, while Bournemouth, Christchurch, and Poole Council can raise their share by up to 6.75%.
Council tax rates usually rise every April. The average Band D council tax in England for 2025/26 is approximately £2,381. This increase follows the Government’s announcement of a three-year settlement for local authorities, providing about £78 billion to town halls across England.
To support councils most affected by funding cuts, a £440 million Recovery Grant uplift has been allocated, with a total of £2.6 billion expected through the Recovery Grant by 2028/29. Local government minister Alison McGovern emphasized that the additional flexibility in tax increases is a limit, not a target, and decisions on council tax levels are at the discretion of local authorities.
Many individuals are unaware of council tax discounts ranging from 25% to 100%, depending on personal circumstances. Certain groups, such as single occupants, those with severe mental impairments living alone, or all-student households, may be eligible for the full 100% discount. Residents should contact their council to check for applicable discounts.
Council Tax Support or Council Tax Reduction schemes are available for benefit claimants or those on low incomes, potentially providing a full bill waiver. Each council manages its own scheme, leading to varying discounts and eligibility criteria based on location.
Homeowners may challenge their council tax banding if they suspect it is incorrect, possibly resulting in refunds and reduced future bills. However, it is essential to research thoroughly beforehand, as misclassification could lead to higher payments or affect neighbors in the process.
