Seven local councils have been granted approval to raise their council tax by more than 5%. Typically, councils in England can increase council tax by up to 5% without needing a referendum. However, Shropshire, Worcestershire, and North Somerset councils have been authorized to raise their portion by a maximum of 9%. Similarly, Trafford, Warrington, and Windsor and Maidenhead councils can increase their share by up to 7.5%, while Bournemouth, Christchurch, and Poole Council can raise theirs by up to 6.75%.
Council tax adjustments usually take effect in April each year. For the 2025/26 financial year, the average Band D council tax in England is around £2,381. The government’s recent three-year settlement for local authorities has allocated approximately £78 billion to town halls across England.
To support councils most affected by funding cuts, a £440 million Recovery Grant uplift has been introduced, with a total of £2.6 billion expected through the Recovery Grant by 2028/29. According to Local Government Minister Alison McGovern, the reforms in local government finance aim to allocate resources where they are most needed. She emphasized that decisions on council tax levels are the responsibility of local authorities.
Many individuals are missing out on council tax discounts that could reduce their bills by 25% to 100%, depending on personal 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 can receive a 100% discount. Residents are encouraged to contact their local council to inquire about applicable discounts.
Council Tax Support or Council Tax Reduction schemes are available for individuals claiming benefits or with low incomes, potentially offering a full bill discount. Each council administers its own scheme, leading to variations in available discounts and eligibility criteria based on location.
Lastly, homeowners may challenge their council tax banding, as many properties are believed to be incorrectly categorized. Correcting an inaccurate band can result in refunds and lower future bills, but individuals should research thoroughly as upward band adjustments may lead to higher payments and affect neighbors.