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.

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Critics argue the council tax system is outdated and unfair, relying on 1991 property valuations and disproportionately burdening poorer areas.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.