Government sets limit on council tax rises in 2025-26

Local authorities will be able to raise core council tax by 3% and adult social care precept by 2% in 2025-26 without need for local referendum

Budget folder and calculator
Photo: DOC RABE Media/Adobe Stock

The government has set limits on increases in council tax in 2025-26.

English local authorities will be able to raise core council tax by 3% and the adult social care precept – which is ring-fenced for the sector – by 2% – the same limits that have applied over the past two years. Authorities generally made full – or near full – use of this limit in 2024-25.

Councils will not be able to raise taxes by a higher amount without gaining public consent through a local referendum, said the Ministry of Housing, Communities and Local Government.

The 5% total rise in council tax forms part of a settlement which the government has said will enable authorities to increase their spending by 3.2% in real terms in 2025-26. This figure, revealed in last month’s Budget, also includes an additional £1.3bn in government grant for councils, at least £600m will be ring-fenced for social care.

However, social care leaders have warned that the extra funding for the sector risks being swallowed entirely by the impact on the sector of increases in the national living wage and employers’ national insurance contributions.

, , ,

6 Responses to Government sets limit on council tax rises in 2025-26

  1. Berni November 20, 2024 at 4:11 pm #

    I think revisiting council tax overall is needed . I don’t mind paying my way but why should I be paying the same council tax as someone who has a much more expensive property .

    Its ordinary folk who will be footing the bill again.

    Why do I feel we are going around in circles .

    • Anonymous November 21, 2024 at 6:10 am #

      Council tax has band, which should mean more expensive properties do pay more than you.

      • Berni November 21, 2024 at 3:32 pm #

        Ah , sorry here is what I meant . The banding system is from 1991 but with the growth and jump in value of properties we have a tax based on a thirty year old value. Paul Johnson advises that the most valuable of properties band H attract three times as much tax as the least valuable Band A despite being worth 8x as much .

        We would argue that some people merely live in a property that with time has become very expensive and this could be factored in but for those that can , they should .

        On offence meant – just a thought .

        • Clive Woolls December 13, 2024 at 7:00 pm #

          My observation is that people living in near stately houses are still only paying maximum band H despite their property being worth perhaps £10m.
          Nice deal, eh?

  2. John Cookson November 26, 2024 at 11:10 am #

    Wasn’t one of Starmers Election promises NOT to increase Council Tax if they got in power? So is this yet another Election promise being disregarded?

    • Karen November 27, 2024 at 10:14 pm #

      Well labour is supposed to support the working class, they have lied to us all and I’m a widow so I’m hoping that the council tax isn’t going to be hiked up,