Seven local councils have received approval to raise their council tax by more than 5%. Normally limited to a 5% increase without a referendum, Shropshire, Worcestershire, North Somerset, Trafford, Warrington, Windsor, Maidenhead, and Bournemouth, Christchurch, Poole Council have been allowed increases up to 9%, 7.5%, and 6.75% respectively.
Council tax adjustments typically occur annually in April, with the average Band D council tax in England for 2025/26 set at around £2,381. This decision follows the government’s allocation of approximately £78 billion over three years to local authorities across England.
To address funding cuts, a targeted investment of £440 million through a Recovery Grant uplift is being provided to the most affected councils. By 2028/29, a total of £2.6 billion will be available through the Recovery Grant.
Local government minister Alison McGovern emphasized that the additional flexibility in council tax rates is a limit, not a target, leaving decisions on tax levels to local authorities. Many individuals miss out on council tax discounts ranging from 25% to 100%, depending on personal circumstances.
Discounts for individuals living alone, those with severe mental impairments, or in all-student households can apply. Residents are encouraged to contact their respective councils for eligibility and to explore schemes like Council Tax Support or Council Tax Reduction for potential bill reductions.
Challenging council tax bands is also an option, potentially leading to refunds and lower future bills. However, thorough research is crucial, as incorrect banding adjustments can result in higher payments and affect neighboring properties.