“Fewer English Councils Opt for Maximum Tax Hikes”

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Fewer local authorities in England are planning to increase council tax by the maximum 4.99% this year, according to new analysis. While most councils have opted for the highest level of increase permitted without a referendum, approximately nine fewer councils will not do so this year.

Data analysis reveals that out of the 153 top-tier authorities, around 119 have either proposed or confirmed a 4.99% rise for the 2026/27 period. Additionally, six councils facing financial challenges are likely to surpass this limit with the government’s approval.

This indicates that 125 authorities, accounting for 82% of the total, are planning for an increase of at least 4.99%, a decrease from 134 councils (88%) last year. The figures were compiled by the Press Association based on the latest data available from English local authorities as of February 25, 2026.

Among the findings, 25 upper-tier councils are not aiming to raise council tax by at least 4.99%. Among these, eight councils plan for increases between 4.00% and 4.98%, nine between 3.00% and 3.99%, and the remaining eight between 1.99% and 2.99%. Notably, 10 of these councils are governed by Reform UK, either as the majority party or in a minority administration.

Despite Reform’s pledge to lower taxes at local and national levels, some Reform-led councils, like Doncaster, North Northamptonshire, and Worcestershire, are considering significant increases to tackle financial pressures. For instance, Worcestershire, under Nigel Farage’s party, has proposed an 8.98% rise to address financial challenges that could lead to effective bankruptcy.

Other councils granted permission to exceed the 4.99% limit include North Somerset and Shropshire, proposing increases of 8.99%. Notably, North Somerset is governed by a coalition of Labour, Liberal Democrats, Greens, and independents, while Shropshire has a Liberal Democrat majority.

Furthermore, councils such as Trafford, Warrington, and Windsor & Maidenhead are considering increases above 4.99%, with the right to raise taxes by up to 7.49%. Among Reform-led councils, various regions like West Northamptonshire, Derbyshire, and Warwickshire have opted for more moderate increases ranging from 4.40% to 4.95%.

In contrast, Coventry and Rutland are among the non-Reform councils proposing lower increases below 4.99%, citing additional funding from the government as a reason for their more moderate tax plans.

The government’s recent reforms in the local government finance system aim to provide fairer funding distribution through changes in allocation formulas and multi-year settlements. Despite these efforts, the Local Government Association cautions that some councils may still struggle to keep up with inflation and increasing service demand.

Greg Stride, a principal researcher at the Local Government Information Unit, emphasized that while a few councils have been granted temporary relief from raising taxes due to funding changes, rising cost pressures suggest that this relief may be short-lived. Forecasts from the Government and the Office of Budget Responsibility anticipate that councils will likely resort to maximum tax increases in the future.

A spokesperson from the Ministry of Housing, Communities, and Local Government highlighted that local authorities have the autonomy to set council tax levels based on local service needs, with over £78 billion allocated for council finances next year, an increase of over 6% compared to the previous fiscal year.

Lastly, three top-tier authorities are yet to disclose their proposed or confirmed tax figures, reflecting the ongoing dynamics in council tax planning across various regions in England.

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