Six councils approved for above 5% tax hikes

The government has reviewed requests from several struggling authorities to increase council tax above the 4.9% threshold allowance.

Six applications have been approved.

They include Birmingham City Council, which increased council tax by 10% in 2024, and was seeking a further 10% rise this year. Ministers turned down its request but has allowed a 7.49% rise. Trafford Council has also been granted the same increase.

Windsor & Maidenhead Borough Council had requested a huge 25% hike. This was also rejected, but they will be able to impose an 8.9% rise on residents, as will Newham Council.

And residents in Bradford will shoulder a 9.9% uplift.

Most other councils have confirmed they’ll push forward with a 4.9% rise in April, apart from Harwich Town who have decided to freeze council tax for 2025-26.

Labour announced it would maintain the annual 4.9% council rise cap when it came into power to protect households from excessive increases.

Any council wanting to hike council tax by more than 4.9% must ask residents to back the higher increase in a referendum.

But councils facing financial woes can ask the government to allow bigger increases to help plug budgetary gaps.

According to the government, the councils awarded above threshold rises have some of the lowest levels of tax in the country. Residents in those areas are expected to still pay less than other areas.

What should you do if you’re worried about council tax rises?

If you're worried about council tax going up, you're definitely not alone. It can be stressful, especially when budgets are already tight. But there are a few things you can do:

Review your council tax band

Check if your property is in the correct council tax band. You can appeal if you believe it's been incorrectly assessed, which could lower your bill.

Apply for discounts or exemptions

Depending on your circumstances, you might be eligible for discounts, for example, you live on your own or are a student.

Council Tax Reduction Scheme

If you're on a low income or receive certain benefits, you may qualify for a reduction through your local authority’s scheme. Some people could receive a 100% reduction.

Budgeting

Go through your household budget to see where you can make savings to accommodate council tax increases. Make sure you prioritise essential expenses when planning.

Payment Plans

Contact your local council to discuss flexible payment options. They might allow you to spread payments over 12 months instead of 10 to reduce monthly costs.

Get Advice

If you’re already in behind with your council tax payments or think April’s increases are unaffordable, you should speak to us. We can help.

You can also find some helpful useful in this guide: https://www.moneywellness.com/debt-advice/types-of-debt/what-to-do-about-council-tax-arrears