Council tax is set for significant increases across England this April, impacting households nationwide. Most councils are poised to implement the maximum allowable rise of 4.99%, while some areas are experiencing even steeper hikes. For instance, Bradford Council will introduce the highest increase at 9.99%, followed closely by Newham and Windsor & Maidenhead at 8.99% each. Meanwhile, Trafford, Birmingham, and Somerset are set to raise their rates by 7.49%, according to analyses by multiple sources including Sky News and the Mirror.
Leaders across the country have expressed their concerns over the rise, citing financial pressures and a need for additional revenue to provide essential services. In the North East, Newcastle's council finance chief, Coun Paul Frew, remarked that the 4.99% increase was reluctantly accepted but reflects a broader trend affecting councils under financial strain. He noted that this year marks a “step change after 15 years of neglect” from previous governments. Likewise, Gateshead's council leader Martin Gannon acknowledged the burden the increases are placing on local households.
The sharp rise in council tax is a part of a more significant trend affecting local authorities across England. Approximately 75% of councils will roll out hefty increases on second homes, potentially doubling tax rates starting April 1, 2025, which could generate an extra £445 million in revenue. There are about 557,000 second homes in the country, with many councils in hotspots like Cornwall and Norfolk leading these changes, helping local authorities to cope with budget shortfalls.
The Ministry of Housing, Communities and Local Government (MHCLG) supports these measures, stating that they allow councils to confront the challenges presented by high numbers of second homes that drive up housing costs in local communities. The department clarified that local authorities can impose a premium of up to 100% on council tax bills for second homes, aiming to provide local councils with greater financial resources to support public services.
The current financial landscape for local councils is dire; according to government data, an average Band D council tax in England for 2025/26 will be £2,280, reflecting a rise of 5%, or £109, from the previous year. With councils facing a staggering funding gap projected at £8.4 billion by 2028/29, the increased council tax becomes a critical source of revenue.
As councils across the country grapple with serious funding shortages, the implications of these tax rises are being felt acutely throughout various demographics. Some councils have been authorized to exceed the standard increase, affecting large populations. For example, Sunderland will see a 4.49% increase, while many others like Doncaster and Derby opted for 3.99% rises.
Moreover, the financial pressures are not uniform across the country. While some areas, like Wandsworth in London, are still managing to keep increases low—at just 2.00%—the situation in Bradford highlights the disparity, with significant hikes driven by financial necessity.
Individuals facing rising tax obligations are urged to explore available discounts. Full-time students, people living alone, and those receiving certain government benefits may qualify for reductions. Newcastle's Coun Paul Frew emphasized the robust support scheme in place for vulnerable residents, which is an effort to mitigate the impact of rising taxes.
While these measures may provide some relief, the question remains whether they will adequately address the broader funding crisis for public services. Adam Hug, housing spokesperson for the Local Government Association, described the increases as a “nudge in the right direction,” but he also emphasized that this is only one part of a much larger solution required to resolve the ongoing housing crisis.
Reflecting on the tax rises, Ian O'Donnell, a local government consultant, articulated the dilemma: “After more than a decade of austerity and low council tax increases, the funding system for councils is broken.” He stresses the urgent need for government policies that can distribute funding more equitably across different areas.
As tax season looms, affected residents will be navigating these changes in council tax alongside their existing financial obligations. While local authorities are pushing for greater revenue to maintain essential services, households will have to adapt to the new economic realities.
For more information on how much your council tax will rise, various interactive tools are available, allowing residents to input their postcodes and calculate the expected increase tailored to their local area. Thus, as the new financial year begins, residents across England will need to brace for the impacts of these fiscal changes.
