Millions Face Council Tax Hikes as Local Authorities Seek Emergency Increases

Eight councils, citing financial crises, propose tax rises of up to 25%, far exceeding the standard 4.99% cap set by the government.

Over 4 million households could see council tax increases above the legal 4.99% limit, with Windsor and Maidenhead proposing a 25% rise, the highest in two decades.
Eight councils, including Birmingham, Hampshire, and Bradford, have requested permission from the central government to exceed the cap due to severe financial distress.
Birmingham City Council, which declared effective bankruptcy in 2023, is considering a 9.99% hike, adding to significant debt driven by pension deficits and failed projects.
Some councils, such as Spelthorne and Woking, face massive debts from risky investments in commercial property, leaving them with liabilities that strain local budgets.
The Ministry of Housing, Communities and Local Government will decide on these requests, with critics arguing that taxpayers are being burdened by poor fiscal management.