Most English households facing a third year of council tax rises

Only nine upper-tier authorities are keeping increases to 4.5% or below

A majority of households in England are facing a third year of maximum council tax hikes after all councils confirmed their plans.

Nearly nine in 10 (88%) of 153 upper-tier authorities in England will impose a 4.99% increase this year, the most allowed without triggering a local referendum.

If councils increasing bills by 4.5% or more in April are included in the tally, the proportion increases to more than nine in 10 (94%).

For just over two-thirds (68%) 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, according to analysis by the PA news agency.

By contrast, just nine councils are boosting bills by less than 4.5% this year.

Sunderland has chosen a 4.49% increase, Kensington & Chelsea in London 4.00%, Doncaster and Derby have both opted for 3.99%, while North East Lincolnshire will increase bills by 3.98%.

Council tax in Essex will rise by 3.75% and in Rotherham by 3.00%.

Lincolnshire will boost bills by 2.99% while Wandsworth in London has approved the lowest increase in England of 2.00%, 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.”

Addressing residents on its website, the council added: 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.”

A vast majority of residents in England continue to face maximum council tax increases, however.

The 4.99% cap, which includes a 2% adult social care precept, has been in place over the last three years.

While 68% of upper-tier councils have raised council tax by the maximum in each of the past three years, 84% have done so in both 2025/26 and 2024/25, PA analysis shows.

Data for individual regions show that of the 24 top-tier councils in the North West, all are increasing to the limit in 2025/26 except Warrington, which has opted for 4.98%, while Trafford has been allowed by the Government to raise bills by 7.49%.

All 20 councils in the South East have approved an increase of 4.99% or more this year, including an 8.99% rise by Windsor & Maidenhead.

Essex is the only council out of 10 in the East of England not to hit the cap threshold, along with three of the 10 councils in the East Midlands: Nottinghamshire, Derby and Lincolnshire.

Coventry has confirmed a 4.90% increase, the only authority of the 14 in the West Midlands not to raise council tax to the limit or, in the case of Birmingham, higher, to the Government-approved level of 7.49%.

All but two of the 15 councils in the South West are increasing council tax by the maximum or above, with Wiltshire (4.50%) and Torbay (4.75%) the exceptions, while Somerset is raising bills by 7.49%.

Just three of the 33 London councils have opted to increase council tax by less than 4.99%, Wandsworth, Kensington & Chelsea and Barnet (4.80%), while Newham has received permission for a 8.99% increase.

Published: 17/03/2025 by Radio NewsHub