More than four million households across the UK are bracing for staggering council tax hikes set to take effect this April. Eight local authorities have signaled their intent to raise council tax rates sharply, with Windsor and Maidenhead proposing a dizzying 25% increase—the largest rise seen in England for the past two decades. This shocking development raises alarm bells not just for finances, but for the wellbeing of families already squeezed by high living costs.
According to recent reports by the Daily Mail, several councils across the nation are proposing substantial increases. While the law typically caps local authority tax rises at 4.99%, financial turmoil prompts councils to utilize a loophole by declaring financial distress through Section 114 notices. This type of notification indicates the council cannot operate within its existing budget and allows them to request government permission for higher increases, signed off by Secretary of State for Housing, Communities and Local Government, Angela Rayner.
The Royal Borough of Windsor and Maidenhead is at the forefront of this crisis, with the proposed increase adding approximately £451 to the average household bill. Councils like Bradford, North Somerset, and several others are not far behind, contemplating increases between 9.99% and 15%. For example, Bradford would see residents facing an additional £170, and North Somerset plans to add around £256 to their residents' bills.
Benjamin Elks, grassroots development manager at the TaxPayers’ Alliance, expressed growing frustration among local taxpayers: "Local taxpayers are fed up with having to pick up the tab for reckless councils. It’s high time town halls focused on delivering core services efficiently, not asking local residents to keep funding their dangerous addiction to spending." His statement reflects the sentiment of many taxpayers already battling rising costs.
Labour-run Birmingham City Council seeks to implement another 9.99% rise for the second consecutive year, which would mean Band D council tax payers could see their bills rise by roughly £400 over two years. Hampshire County Council, led by Conservatives, anticipates adding £230 to the average Band D bill, emphasizing the dire financial circumstances they face.
Local authorities have been grappling with significant budget constraints. Carolyn Williamson, Hampshire’s chief executive, pointed out, "Despite being a well-run, high-performing council... we can no longer make enough savings and still deliver our statutory responsibilities." She even hinted at the possibility of issuing a Section 114 notice if substantial changes to local government funding are not enacted by 2026-27.
Critics argue these proposed rises could not come at a worse time. Many households across the UK are already managing tight budgets due to rising living costs, and additional council tax burdens could push some families to the brink of financial distress. Some residents are voicing their concerns on social media, sharing stories of struggling families who just can’t afford these hikes.
The Ministry of Housing, Communities and Local Government issued the following statement: "No decisions have been made on council tax increases, and we will only...consider agreeing to requests for rises above 5% in exceptional circumstances." Still, as councils themselves have pointed out, operating under the traditional funding model is not sustainable amid current economic pressures.
Beyond the financial impact of these increases, there are wider questions about how councils are managing public funds. The Local Government Association acknowledged the tough choices councils must make, but also commented on the necessity for significant changes to local government funding to stabilize finances. They urged councils to be transparent about spending and prioritize services local residents need, rather than increasing taxes.
Reports suggest the financial landscapes of these councils are precarious—some even face bankruptcy if they cannot secure adequate funding. Members of the public are encouraged to stay informed and to engage with local governance, advocating for their interests as tax bills loom larger than ever.
With this year’s proposed council tax hikes, it’s clear the issues surrounding local authority financing are more complex than they appear on the surface. Residents are left with difficult choices: Will they accept the increases, or will they push back against local councils to seek more sustainable solutions? Only time will tell how residents will react come April.