Seven areas in England facing council tax rise of up to 25 per cent in April

According to new analysis, more than four million households face council tax rises of up to five times the legal limit from April this year.
-Credit:Reach Publishing Services Limited


Seven councils in England hiking council tax by as much as 25 per cent under the Labour Party government have been revealed. According to new analysis, more than four million households face council tax rises of up to five times the legal limit from April this year.

Under current rules, local authorities are not allowed to increase their tax bills by more than 4.99 per cent without the approval of the government. They can request to raise more by threatening to declare bankruptcy if they aren’t able to significantly increase residents’ tax bills.

Councils can also take advantage of a loophole via a Section 114 notice, a report from the council’s finance officer that states the authority cannot operate within its existing budget. Lib Dem-run Windsor and Maidenhead council has a planned rise of 25% which is the highest among the seven councils looking to exceed the limit.

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In a statement issued in December, the Windsor and Maidenhead said it was requesting the government allow it to raise council tax 20 per cent above the current allowable limit of 4.99 per cent, explaining the council faced bankruptcy if it didn’t do so.

“The measures are proposed in the context of the challenges of high inflation and interest rates, alongside increased demands for services, being felt by councils across the country,” it said. Hampshire County Council and Labour-run Bradford Council are both planning 15% rises.

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Birmingham City Council is looking to hike its council tax bills by another 9.99% for the second year running. Newham, east London – 10%, Cheshire East – 9.99% and Slough – 7.99% are also earmarked for huge rises as we head deeper into 2025.

A spokesman for the Ministry of Housing, Communities and Local Government said: “No decisions have been made on council tax increases, and we will only consider agreeing to requests for rises above five per cent in exceptional circumstances in line with the previous government’s position.

“Councils are ultimately responsible for setting their own council tax, and we will put taxpayers at the forefront of any decision.”