Council tax map shows where millions face increase of more than 5%
After receiving requests from struggling councils, the government has agreed to let some raise their taxes well beyond the standard threshold in April.
Council tax is set to be hiked by beyond the established annual threshold for millions of households this year after six struggling local authorities were given the go-ahead by the government.
In a statement yesterday, Angela Rayner said allowing the town halls to raise their tax beyond the standard 5% had "not been taken lightly" but said it was necessary to "prevent these councils falling further into financial distress".
The deputy prime minister said this "must be balanced with the interests of taxpayers", with the Westminster government only agreeing to a limited number of requests for higher-than-usual tax hikes, adding that in all cases it had not approved the full amount requested.
It comes after the Local Government Association warned of a £4bn funding gap over the next two years, with many councils crying out for more support from central government to tide them over.
Rayner confirmed that councils would have access to a £69 billion in funding settlement for 2025 to 2026 – marking a 6.8% cash terms increase on 2024/25.
However, this may not provide too much comfort to families facing council tax rises up to 10% in April.
Which are the six councils?
Bradford Council had submitted a request to raise its council tax by 14.99% but was allowed a 9.99% increase in the end.
Council leader Susan Hinchcliffe said that while "none of us want to see an increase", the local authority needs to save £40m next year and a further £50m per year for the following four years, the BBC reports.
Windsor and Maidenhead Council asked for a 25% increase as it tries to get to grips with its debt pile of over £200m, but was granted permission to raise it by 8.99%, according to the Maidenhead Advertiser.
Newham Council in east London will be able to raise the rates by 8.99%, having requested 10%, while Birmingham, Somerset and Trafford have been granted a further 2.5% uplift beyond the 5% threshold.
What is the maximum rise?
In her statement, Rayner explained that "it will be for individual councils to take final decisions on setting council tax in their areas", having been given permission.
Usually, local authorities are required to hold a referendum if their relevant basic amount of council tax is in excess of the council tax referendum principles set by the government.
In 2025/26, local authorities with social care responsibilities (county and unitary authorities) will have a total threshold of 5% or more.
Of this, 2% is available for adult social care and 3% for general spending. District councils have a threshold of 3% or £5 on a band D bill; and for Police and Crime Commissioners, the threshold is £14 on a band D bill.
Any authority proposing an increase beyond these limits usually is required to hold a local referendum and obtain a ‘yes’ vote before implementing the increase.
However, in the case of the six councils mentioned, they will not have to hold a referendum because they've been given special approval by the central government.
How can I find out my council tax?
To find out how much your council tax is going up by in April, you can start by typing your postcode here on the Gov.uk website and finding your address.
From there, you'll be shown your local authority, if you don't already know it, and which council tax band your property falls under.
Not all councils have decided how much they are raising the tax by, but you can then check on your council's website, or local news sites, to see how much more you're likely to be paying from the coming financial year.
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