Why millions face council tax hikes of more than 5% this spring

More than two million people will see their council tax bills rise by more than 5% from April, after six local authorities in England were given permission to increase rates above the usual threshold.

Many councils have yet to confirm their rates for the new financial year, but initial data suggests the majority of areas will impose the maximum increase of 4.99%.

But why is council tax going up next month, and is there anything you can do to reduce your bill?

How much could council tax rise by?

Since April 2023, local authorities in England have been allowed to increase council tax by up to 4.99%, including the social care precept (if your council qualifies) and without the need for a local referendum. Previously, they could only increase the charges by a maximum of 2.99%.

The full data for 2024-25 will be released on 20 March, but the County Councils Network predicts that 93% of areas will levy the maximum increase this April. 

Six councils with particularly stretched finances have been given permission by the government to raise taxes by more than 4.99%. Collectively, these councils have around 2.5 million residents. 

Bradford will be able to increase the levy by a further 5%, while Windsor and Maidenhead and Newham can increase bills by an extra 4%. The remaining councils – Birmingham, Somerset and Trafford – have been granted a 2.5% uplift. 

Several councils were not given permission to impose larger increases, including Hampshire, which had asked for a 15% rise.

What's happening in the rest of the UK?

There are no caps on the amount that local authorities can increase council tax by in Scotland or Wales.

Council tax in Scotland was frozen last year, but local authorities are able to increase rates again in 2025-26. Figures released last week showed some areas will see bills rise by more than 10%. The steepest increase will be in Falkirk, after the council agreed to hike rates by 15.6%.

Rises in Wales look likely to be similarly steep, with residents in Pembrokeshire bracing themselves for a 9.85% increase in their bills. 

Northern Ireland's system works differently to the rest of the UK, with rates calculated by multiplying the 'rateable capital value' of a property by the 'domestic rate poundage' – the sum of the domestic regional rate and domestic district rate. 

The domestic district rate is set by the 11 councils in Northern Ireland, and all have already chosen to increase bills for 2025-26. Belfast will see the biggest rise, at 5.99%

Council tax has risen by more than £700 in the past decade

A 4.99% increase in April could see average annual band D council tax rates in England rise by £108, to £2,279 a year.

As this table shows, council tax has increased every year for the past decade, soaring from £1,468 in 2014-15 to £2,171 in 2024-25:

What's behind recent council tax rises? 

Council tax makes up around half of local authority funding, according to the Institute for Government (IfG), so increasing rates is an obvious choice if other revenue streams are drying up.

IfG figures show that central government funding for councils in England fell by 10.2% between 2009-10 and 2021-22. That, combined with inflation, higher energy costs, and increased demand for services such as child and social care, has put pressure on local authorities to increase council tax.

Some councils have felt the squeeze more than others. Last year, Birmingham Council hit the headlines after it filed a Section 114 notice, declaring effective bankruptcy. To help it stay afloat, it was allowed to increase council tax by 10% for 2024-25. 

• Find out more: council tax bands explained

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Ways to reduce your council tax bill

It’s likely your council tax rates will go up in 2024-25, but there are some circumstances in which you may be able to reduce your bill:

• Apply for a discount: depending on your circumstances, you may qualify for a council tax discount of 25%. You can get this discount if you live alone or with others who are 'disregarded' for council tax purposes, such as full-time students. 
• Empty property rules: other reductions may be available for empty properties, as well as second homes and holiday homes. These discounts aren't applied automatically, so if you think your property fits the bill, you’ll need to write to the council and make your case. 
• Review your council tax band: this is an option if you think the original valuation of your home might have been wrong, or changes made to the property's use or size since its valuation have altered the band it should sit in. Just bear in mind that it's also possible to be reclassified into a higher band, which would increase your bills.

Read our guide on reducing your council tax bill for more helpful advice and tips.

How to get help if you can’t pay

Failing to pay your council tax bill can have serious consequences. 

If you don't pay after receiving a final notice, your council can take legal action, including getting your employer to pay your unpaid tax directly from your wages, or sending in bailiffs. If everything else fails, you can be taken to court and even face prison time.

There are a few things you can do if you're struggling, however: 

• Contact your local authority: ask about reducing or rescheduling payments. You'll probably need to provide evidence that your savings, earnings or other assets can't cover what you owe.
• Apply for hardship relief: this can help if you're experiencing 'exceptional hardship' beyond your control. 
• Apply for council tax reduction: the way this works depends on where you live, but you could be eligible if you're on a low income or receive benefits. 

Our guide to paying council tax has more details on what to do if you don't think you can pay your council tax bill.