Nearly nine out of ten councils in England are set to impose the maximum council tax increase for the third consecutive year, as local authorities struggle with funding shortfalls and rising costs. The 4.99% rise, the highest allowed without a local referendum, will apply to 88% of upper-tier authorities in the 2025-26 financial year.
Six councils have been granted permission by ministers to raise bills by up to 10% to avoid bankruptcy. Labour-run Bradford will increase council tax by 9.99%, while Newham in east London will raise it by 8.99%. Liberal Democrat-controlled Windsor and Maidenhead, which requested a 25% rise, was limited to 8.99%.
Other councils including Somerset, Trafford, and Birmingham have been allowed increases of up to 7.4%. For more than two-thirds of top-tier authorities, this marks the third year in a row of maximum rises.
In contrast, a few councils have implemented smaller increases. Wandsworth in London approved the lowest rise in England at 2%, freezing the main element of council tax for the third year. Sunderland chose a 4.49% increase, while Kensington & Chelsea opted for 4%.
A Ministry of Housing, Communities and Local Government spokesperson said councils should carefully consider the impact of their decisions, maintaining a referendum threshold to protect taxpayers. The Local Government Association noted that while council tax is an important funding stream, it cannot alone address the severe financial pressures facing local services.
