Most households in England are facing a third year of being charged the maximum council tax increase after all councils confirmed their plans for the 2025-26 financial year.
Nearly nine in 10 (88 per cent) of 153 upper-tier authorities in England will impose a 4.99 per cent increase this year, the most allowed without triggering a local referendum.
If councils increasing bills by 4.5 per cent or more in April are included in the tally, the proportion increases to more than nine in 10 (94 per cent), analysis by the PA news agency shows.
Six councils have been granted permission by the Government to raise council tax above 5 per cent without holding a local referendum as part of efforts to stay afloat.
Bill Revans, leader of Somerset Council, which has been permitted to raise council tax by 7.5 per cent, said the flexibility has enabled the authority to avoid issuing a Section 114 notice declaring effective bankruptcy.
‘Residents paying more but receiving less services’
But he said this approach was “not a solution to local government finance”.
“It is, of course, welcome because we want to be able to manage our own affairs,” he added.
“But at the same time, it’s incredibly difficult because ultimately our residents are having to pay more, and at a time when they are seeing less services because the services go to those people most in need of adults and children’s social care.”
For just over two-thirds (68 per cent) of top-tier authorities, it will be the third year in a row that bills have gone up by at least the maximum legal amount.
Only nine councils are increasing council tax by less than 4.5 per cent this year.
Sunderland has chosen a 4.49 per cent increase, Kensington and Chelsea in London 4 per cent, Doncaster and Derby have both opted for 3.99 per cent, while North East Lincolnshire will increase bills by 3.98 per cent.
Council tax in Essex will rise by 3.75 per cent, in Rotherham by 3 per cent and in Lincolnshire by 2.99 per cent.
Wandsworth in London has approved the lowest increase in England of 2 per cent, representing a freeze on the main element of council tax for the third year in a row.
The council said “sound financial management is at the heart of everything we do”.
“Wandsworth has one of the lowest levels of debt and some of the highest financial reserves in London, allowing us to freeze the main element of councils tax and invest in what matters most,” it said on its website.
However, the vast majority of residents in England continue to face maximum council tax increases.
The 4.99 per cent cap, which includes a 2 per cent adult social care precept, has been in place over the last three years.
While 68 per cent of upper-tier councils have raised council tax by the maximum in each of the past three years, 84 per cent have done so in both 2025-26 and 2024/25, PA analysis shows.
All of the 20 poorest council areas, according to the latest indices of deprivation compiled in 2019, are increasing council tax to the limit.
This includes three Labour-run authorities, Newham, Bradford and Birmingham, who have been allowed to increase bills above 4.99 per cent this year due to severe financial difficulties.
Council tax is set to rise by 8.99 per cent in Newham, while a 9.99 per cent rise has been agreed in Bradford and a 7.49 per cent increase in Birmingham.
The West Midlands city’s residents are facing weeks of rats and rubbish pile-ups after the extension of a bin workers’ strike, which began in January.
Only one of the 20 wealthiest council areas, Wiltshire, is not increasing council tax to the threshold.
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 and Maidenhead.
The royal borough’s residents were facing a 25 per cent increase but the council’s bid for such a hike was rejected by the Government.
A Ministry of Housing, Communities and Local Government spokesperson said: “While councils are ultimately responsible for setting their own council tax levels, we are clear that they should put taxpayers first and carefully consider the impact of their decisions.
“That’s why we are maintaining a referendum threshold on council tax rises, so taxpayers can have the final say and be protected from excessive increases.”
A spokesperson for the Local Government Association, which represents councils across England, said: “Councils continue to face severe funding shortages and soaring cost and demand pressures on local services.
“This means that many councils have faced the tough choice about whether to increase bills to bring in desperately-needed funding to provide services at a time when they are acutely aware of the significant burden that could place on some households.
“However, while council tax is an important funding stream, the significant financial pressures facing local services cannot be met by council tax income alone. It also raises different amounts in different parts of the country – unrelated to need.
“The Spending Review needs to ensure councils have adequate funding to deliver the services local people want to see.”
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