Fewer councils in England are planning to increase council tax by the maximum allowable level this year, according to recent analysis. A majority of local authorities can raise council tax by up to 4.99% without the need for a referendum. While most councils are opting for this maximum increase, around nine fewer councils are choosing not to do so this year.
Data analysis reveals that out of 153 top-tier authorities, 119 have either proposed or confirmed a 4.99% rise for the upcoming financial year. Additionally, six councils facing significant financial challenges are likely to exceed this limit with permission from the Government.
This year, 82% of total authorities, amounting to 125 councils, are planning for a minimum 4.99% increase, down from 88% last year. The information is based on data collected from local authorities in England as of February 25, 2026.
Among the councils not planning to raise council tax by at least 4.99%, some are considering increases between 1.99% and 4.98%. Notably, some of these councils are governed by the Reform UK party, known for its pledge to lower taxes.
Leaders in Worcestershire have expressed concerns about their council facing potential bankruptcy due to financial crises. Other councils granted permission to raise taxes beyond 4.99% include North Somerset and Shropshire, proposing increases of 8.99%.
Various councils led by different political parties are making decisions on tax increases, with Reform-led councils opting for moderate hikes. The Government’s recent reforms in local government finance aim to distribute funding more fairly, but the Local Government Association warns that funding may not keep up with inflation and demand pressures.
Despite the varied approaches to council tax increases, local authorities are encouraged to prioritize taxpayers’ needs when setting tax levels. The Government has allocated over £78 billion for council finances in the upcoming year, with much of the funding left unringfenced for local leaders to allocate according to local priorities.