Nearly nine in ten (88%) of the 153 upper-tier authorities in England are set to impose a 4.99% council tax increase this year, the highest amount allowed without triggering a local referendum.
When councils increasing bills by 4.5% or more in April are included, the proportion rises to more than nine in ten (94%). According to an analysis, for just over two-thirds (68%) of top-tier authorities, this marks the third consecutive year that bills have increased by at least the maximum legal amount.
By contrast, only nine councils have opted for a smaller increase below 4.5% this year are: Sunderland: 4.49%, Kensington & Chelsea (London): 4.00%, Doncaster and Derby: 3.99%, North East Lincolnshire: 3.98, Essex: 3.75%, Rotherham: 3.00%, Lincolnshire: 2.99% and Wandsworth (London): 2.00% (the lowest increase in England and a freeze on the main element of council tax for the third year in a row).
A spokesperson for Wandsworth Council said:
“Sound financial management is at the heart of everything we do.”
Despite some councils implementing smaller hikes, the vast majority of English households will still face maximum council tax increases. The 4.99% cap, which includes a 2% adult social care precept, has been in place for the past three years.
While 68% of upper-tier councils have raised council tax by the maximum amount in each of the last three years, 84% have done so in both 2024/25 and 2025/26.
Government and Local Authority Responses
A spokesperson for the Ministry of Housing, Communities and Local Government stated:
“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.”
Meanwhile, a Local Government Association (LGA) spokesperson, representing councils across England, highlighted the financial pressures facing local authorities:
“Councils continue to face severe funding shortages and soaring costs, along with increased demand for local services. Many councils have had to make the difficult decision to raise bills to secure desperately needed funding, despite being acutely aware of the financial strain this place on households.”
However, the spokesperson emphasized that council tax alone cannot address the funding shortfalls:
“While council tax is an important revenue stream, it cannot fully cover the significant financial pressures facing local services. Additionally, council tax revenue varies across different regions, often failing to reflect actual needs.”
The LGA is calling on the government to address this issue in the upcoming Spending Review, ensuring that councils receive adequate funding to deliver essential local services.
