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last mo.

Nearly 90% of English Councils to Implement Maximum Council Tax Hike for Third Year

Struggling local governments cite severe funding shortages and rising service costs as key drivers of continued tax increases.

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All 20 councils in the South East have approved an increase of 4.99 per cent or more this year, including an 8.99 per cent rise by Windsor & Maidenhead (Photo: Tom Pilston/The i Paper)

Overview

  • 88% of upper-tier councils in England will raise council tax by 4.99% for the 2025-26 financial year, the maximum allowed without a referendum.
  • Six councils have received government approval to exceed the cap, with increases as high as 9.99% to stave off financial insolvency.
  • For 68% of councils, this marks the third consecutive year of maximum allowable tax hikes under the 4.99% cap, which includes a 2% social care precept.
  • Critics argue the council tax system is outdated and unfair, relying on 1991 property valuations and disproportionately burdening poorer areas.
  • The government has provided exceptional financial assistance to 30 councils this year, but local leaders warn that council tax revenue alone cannot address funding shortfalls.