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, but these councils have been granted permission to raise it further. Shropshire, Worcestershire, and North Somerset councils are allowed to hike their share by a maximum of 9%, while Trafford, Warrington, Windsor and Maidenhead can increase by up to 7.5%, and Bournemouth, Christchurch, and Poole Council by up to 6.75%.
Council tax usually sees an annual increase every April, with the average Band D council tax in England for 2025/26 standing at around £2,381. This decision follows the government’s announcement of a three-year settlement providing approximately £78 billion to local authorities across England.
Additionally, councils facing significant funding cuts will benefit from targeted investments through a £440 million Recovery Grant uplift, with a total of £2.6 billion expected to be available through the Recovery Grant by 2028/29. Local government minister Alison McGovern stated that the financial reforms aim to allocate resources where needed most, acknowledging the financial challenges some councils still face due to past systems.
Notably, many people are missing out on potential council tax discounts ranging from 25% to 100%, depending on individual circumstances and living arrangements. Discounts apply to various situations, such as living alone, having a severe mental impairment while living alone, or residing in an all-student household. Residents are encouraged to contact their council to explore available discounts and support schemes like Council Tax Support or Council Tax Reduction if they are eligible.
Moreover, homeowners have the option to challenge their council tax band, as incorrect banding could result in overpaying. Conducting thorough research is recommended before challenging the band to avoid potential increases or affecting neighbors if band adjustments are made.
