Council Tax Set to Rise by Maximum in Most Areas From April

Most local councils will likely raise taxes soon. Council tax could increase by nearly five percent in April. Government data shows most councils plan this. About 85% of top-tier councils want a 4.99% rise. Usually, larger increases need a local vote.

Six financially struggling councils got special permission. They can raise taxes more than 4.99% without a referendum. Including them, almost 90% of councils are raising taxes above 4.99%. Seventeen councils aim for increases at or above 4.99%.

Councils face growing costs for important services. Social care, schools, housing, and waste collection are examples. Senior councillors’ proposed tax hikes will probably pass. Councils must set budgets by late February or March.

Some councils plan increases below 4.99%. Barnet and Warrington propose 4.98% increases. Wandsworth plans only a 2% rise. Seven councils plan increases of 4% or less. Kensington and Chelsea want 4%. Doncaster plans 3.99%, and North East Lincolnshire 3.98%. Essex wants 3.75%. Rotherham plans 3%, and Lincolnshire 2.99%.

Bradford can raise taxes by 9.9%. Birmingham aims for 7.49%. Newham can implement an 8.99% rise. Somerset plans 7.5%. Trafford wants to increase taxes by 7.49%. Windsor and Maidenhead can enact an 8.99% increase.

A study shows poorer homes spend more income on council tax. In 2020-21, the poorest fifth paid 4.8% of their income. This is up from 2.9% in 2002-03. The richest fifth spent only about 1.5%.