Average rise near 5% as several councils win approval for higher increases
Households across England and Wales are expected to face a council tax increase of close to 5% on April 1, with the largest rises concentrated in parts of the South West and the Midlands.
Analysis shared with The Times by the Chartered Institute of Public Finance and Accountancy (Cipfa) suggests that, for the first time, the standard band D bill will exceed £2,000 in every region across England and Wales from the beginning of next month. The average rise across England is expected to be 4.8%, while Wales is set to see an average increase of 5.4%. Both are above inflation, which stood at 3% in January.
Seven councils have been given permission to raise council tax above the 5% level that would ordinarily require a local referendum.
The highest increases of 9% have been approved for North Somerset, Shropshire and Worcestershire. Rises of 7.5% have also been permitted in Trafford, Warrington and Windsor & Maidenhead, while Bournemouth, Christchurch and Poole is expected to implement a 6.75% increase.
In London, residents are expected to see an increase of about 4.4%, taking the average annual band D bill to £2,068. Despite this, the capital remains the region with the lowest average band D charge. Inner London has also seen its council tax base increase by 2%, driven by the building of new homes.
Cipfa’s figures indicate that band D bills are expected to average £2,550 a year in the South West, compared with £2,533 in the North East.
Across England and Wales, the average increase for 2026/27 is put at 4.9%, slightly below last year’s 5.1%.
Council tax is set by local authorities and is expected to raise £41 billion in the next financial year. Local government budgets have come under pressure from higher demand for statutory services, including adult social care, children’s services and support for those with special educational needs.
Local government sources have also pointed to the impact of reductions in central government funding in previous years. Some councils are still expected to cut services or draw on reserves to address budget gaps.
From 2028, a council tax surcharge is expected to apply to homes valued at more than £2 million, following an announcement in Rachel Reeves’s most recent Budget. The levy is due to be divided into four bands, with owners of properties worth £2 million to £2.5 million paying £2,500 a year, rising to £7,500 a year for homes valued above £5 million.
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