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last mo.

Nearly 90% of English Councils to Impose Maximum Legal Council Tax Increase for Third Year

Most households in England will see a 4.99% council tax rise as local authorities grapple with funding shortfalls and rising social care costs.

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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 England's 153 upper-tier councils will increase council tax by the maximum 4.99% allowed without a referendum for the 2025-26 financial year.
  • If councils raising taxes by 4.5% or more are included, the proportion rises to 94%, with only nine councils opting for increases below 4.5%.
  • For 68% of councils, this marks the third consecutive year of maximum legal council tax hikes, driven by severe financial pressures on local services.
  • Some councils, including Bradford and Newham, received government approval for increases above the cap, citing acute financial distress, with rates reaching up to 9.99%.
  • Critics argue the current council tax system, based on outdated 1991 property valuations, is inequitable and fails to address the growing funding needs of local governments.