Seven local authorities across England have been granted special permission to implement council tax increases that exceed the standard annual limit of 5%. This development means residents in these specific areas could face significantly higher bills from April, with some councils authorized to raise their share by as much as 9%.
Understanding the Standard Rules and Referendum Requirement
Under normal circumstances, councils in England are permitted to increase council tax by a maximum of 5% each year without requiring additional approval. Any proposed increase beyond this threshold would typically necessitate a local referendum, allowing residents to vote on the matter. However, the government has now provided specific exemptions to this rule for seven councils facing particular financial pressures.
The Councils and Their Approved Increases
The authorities receiving permission for above-average rises include Shropshire, Worcestershire, and North Somerset councils, which have been given the green light to raise their share by a maximum of 9%. Meanwhile, Trafford, Warrington, and Windsor and Maidenhead councils can implement increases of up to 7.5%. Additionally, Bournemouth, Christchurch and Poole Council has been authorized to raise its share by up to 6.75%.
Council tax typically increases every April, and the average Band D council tax in England for the 2025/26 financial year is approximately £2,381. These new permissions come in the wake of the Government's announcement of a three-year settlement for local authorities, which makes around £78 billion available to town halls throughout England.
Government Support and Financial Context
Local Government Minister Alison McGovern commented on the situation, stating: "Our local government finance reforms get money to where it is needed, but we recognise that some councils remain in a challenging financial position as they continue to deal with the legacy of the previous system." She further emphasized that "these additional flexibilities are a limit, not a target. Decisions on council tax levels are for local authorities."
To assist councils most impacted by funding cuts, the government has allocated targeted investment through a £440 million Recovery Grant uplift. By 2028/29, a total of £2.6 billion will be made available through the Recovery Grant to support local authorities.
How to Reduce Your Council Tax Bill
Millions of households across England may be missing out on valuable council tax discounts, which can range from 25% to 100% off the total bill, depending on individual circumstances and living arrangements. For instance, if you live alone, you are entitled to a 25% discount on your council tax. A maximum 100% discount can be awarded to someone with a severe mental impairment who lives alone, or to households consisting entirely of students.
Exploring Available Support Schemes
It is advisable to contact your local council directly to determine if any discounts apply to your household. Additionally, schemes such as Council Tax Support or Council Tax Reduction are available for those claiming benefits or on a low income. In some cases, eligible individuals could receive a 100% reduction on their bill.
Each council administers its own version of these support schemes, meaning the available discounts and eligibility criteria can vary significantly depending on your location.
Challenging Your Council Tax Band
Another potential avenue for reducing your council tax is to challenge your property's tax band. It is estimated that hundreds of thousands of homes in England are currently in the wrong council tax category. If your home is incorrectly banded, you could be owed thousands of pounds in back payments and benefit from lower bills in the future.
However, it is crucial to conduct thorough research before initiating a challenge, as there is a risk that your band could be increased if it is found to be too low. This could result in higher payments going forward and might also affect your neighbours' bandings.
