Council Tax Hikes: 82% of English Authorities Plan Maximum Rises
New analysis has revealed a significant trend in local government finance across England, with the majority of top-tier councils planning to impose the maximum allowable council tax increase for the 2026/27 financial year. According to data compiled by the Press Association as of February 25, 2026, 125 out of 153 upper-tier authorities – representing 82% of the total – have either proposed or confirmed a rise of at least 4.99%.
Decline in Maximum Increases Compared to Previous Year
While the proportion remains high, this figure marks a slight decrease from the previous year, when 134 councils (88%) implemented the maximum increase. The current analysis indicates that 119 authorities have specifically targeted the 4.99% threshold, which is the largest rise permitted without triggering a local referendum. Additionally, six councils facing acute financial pressures are likely to accept government permission to exceed this limit.
The remaining 25 councils are not planning to reach the 4.99% benchmark. Among these, eight have pencilled in increases between 4.00% and 4.98%, nine are considering rises between 3.00% and 3.99%, and the final eight are looking at increases ranging from 1.99% to 2.99%. Notably, ten of these 25 councils are administered by Reform UK, either as a majority or minority administration.
Political Dynamics and Financial Pressures
The political landscape shows varied approaches among Reform UK-led councils. While Doncaster and North Northamptonshire have signalled intentions to apply the maximum 4.99% increase, Worcestershire has been granted permission for a rise of up to 8.99% to address severe financial challenges. This contrasts with other Reform-led authorities like Lancashire and Leicestershire, which are proposing more moderate increases.
The data covers only the 153 top-tier local authorities in England, including county councils, London boroughs, Metropolitan boroughs, and unitary authorities. It does not incorporate lower-tier district councils, and three authorities have yet to disclose their proposed figures.
Regional Breakdown of Proposed Increases
The proposed council tax rises vary significantly across regions and council types:
- County Councils: Examples include Cambridgeshire (4.99% confirmed, Lib Dem majority), Essex (3.95% confirmed, Con majority), and Worcestershire (8.98% proposed, Ref minority).
- London Boroughs: Most are proposing 4.99% increases, with exceptions like Merton, Wandsworth, and Westminster planning 2.00% rises.
- Metropolitan Boroughs: Trafford stands out with a proposed 7.49% increase, while others like Barnsley and Rotherham are considering lower rates.
- Unitary Authorities: Notable cases include North Somerset (8.99% confirmed) and Shropshire (8.99% proposed), reflecting heightened financial strains.
This comprehensive snapshot highlights the ongoing fiscal challenges facing local governments in England, as they balance essential service provision with the need to manage taxpayer burdens. The trends suggest a cautious yet persistent upward pressure on council tax, driven by a combination of inflation, energy costs, and specific local financial crises.
