The majority of councils are anticipated to raise council tax by the maximum allowable amount of at least 4.99% starting in April.
Data released by the government on Wednesday indicates that 85% of the 139 principal authorities in England that have either proposed or confirmed increases thus far are aiming for a 4.99% rise.
If local councils seek to elevate council tax by 5% or more, they typically must conduct a local referendum.
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Nonetheless, six councils experiencing significant financial difficulties have received authorization to increase council tax beyond this threshold without a referendum.
Currently, 17 councils intending to raise council tax by 4.99% or more have officially announced their plans, 122 are pending approval, and 14 have yet to make their intentions clear, according to analysis from the PA news agency.
Birmingham is among six councils permitted to raise their council tax by more than 4.99% without conducting a referendum. Pic: PA
Councils are contending with escalating expenses, particularly in areas where they are legally required to deliver services such as social care, education, housing, and waste management.
As they encounter mounting pressure to fund these services, it is improbable that the council tax increases proposed by senior councillors will be dismissed by the full council before the budgets must be finalized by the end of February, or March for certain councils.
Some councils are considering increases below 4.99% – but only a total of 15.
For instance, Barnet in north London and Warrington in Cheshire are contemplating increases of 4.98%, while Wandsworth in south London plans a modest 2% rise.
Only seven councils are planning to raise council tax by 4% or less.
These are: Kensington and Chelsea (4%), Doncaster (3.99%), North East Lincolnshire (3.98%), Essex (3.75%), Rotherham (3%), Lincolnshire (2.99%) and Wandsworth (2%).
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The six councils authorized to raise council tax beyond 4.99% are:
Bradford 9.9%
Birmingham 7.49%
Newham, London 8.99%
Somerset 7.5%
Trafford, Greater Manchester 7.49%
Windsor and Maidenhead 8.99%
The Resolution Foundation reported that the lowest-income fifth of households in the UK contributed 4.8% of their income toward council tax in 2020-21, an increase from 2.9% in 2002-3.
This think tank demonstrated that this share of income is three times greater than the 1.5% spent by the wealthiest fifth.
