Seven 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 councils have been given the go-ahead to raise their share by a maximum of 9%.
Trafford, Warrington, and Windsor and Maidenhead councils 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 usually sees an annual rise in April, with the average Band D council tax in England for 2025/26 standing at around £2,381.
The government’s announcement of a three-year settlement for local authorities has made approximately £78 billion available to town halls across England. In addition, councils most affected by funding cuts will benefit from a targeted investment of £440 million through a Recovery Grant uplift, with a total of £2.6 billion available 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 remain with local authorities. Many individuals are not taking advantage of council tax discounts, which can range from 25% to 100% based on personal circumstances and living arrangements.
For instance, those living alone are entitled to a 25% discount, while individuals with severe mental impairment living alone or all-student households can receive a 100% discount. Residents should contact their council directly to inquire about applicable discounts. Various schemes like Council Tax Support or Council Tax Reduction are available for those claiming benefits or with low incomes, potentially offering a full bill waiver.
It is essential to check with your local council as each operates its own discount scheme with varying criteria. Furthermore, homeowners may challenge their council tax band if they believe they are incorrectly categorized, potentially leading to refunds and reduced future bills. Conduct thorough research before challenging your banding to avoid unintended consequences for yourself and your neighbors.