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Council tax expected to rise by 5% a year

Council tax expected to rise by 5% a year

Summary

Council tax in the UK is likely to increase by 5% each year to help fund local services such as social care and policing. Authorities can currently raise council tax by this amount without needing a referendum, though they have the option to seek higher increases if approved locally or by the government.

Key Facts

  • Council tax is expected to increase by 5% annually to support local services.
  • Local authorities have the power to raise council tax by up to 5% each year.
  • Some councils in financial trouble have increased council tax by more than 5% with approval.
  • The Spending Review allocated a 1.1% increase in grant funding to local governments, but total spending power is expected to rise by 2.6%.
  • Police funding, partly covered by a police precept in council tax, is expected to rise by 2.3% annually in real terms.
  • Police and Crime Commissioners can increase the police precept by £14 for a Band D council tax bill without a referendum.
  • Local services covered by council tax include social care, libraries, and street cleaning.
  • Council budgets remain under financial pressure, and further cuts may be necessary despite increases in council tax.
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