Average council tax bills rise again by 5 per cent

Households in England will see their council tax bills rise again in 2025-26, with the average B and D bill reaching £2,280, an increase of 5 per cent compared to last year. 

The latest figures, released today [20th March] by the Ministry of Housing, Communities & Local Government, show that most councils have implemented the maximum possible increases without needing a local vote. Of the 384 authorities subject to referendum principles, 293 have applied the full increase, while 56 others have set rates just below the cap. Only eight councils have frozen or reduced their bills. 

Kevin Hollinrake MP, the Conservative Shadow Local Government Secretary, criticises the Labour government for the rise, arguing that its policies have pushed costs onto local authorities: “This Labour government is driving up costs for councils across the country with their jobs tax. It’s no surprise they have raised council tax by 5 per cent, with the highest increases by Labour and Liberal Democrat councils.”

Under government rules, councils cannot increase tax beyond a set limit, usually 5 per cent for those responsible for social care, without holding a local referendum. Most councils have stayed just below this threshold to avoid a public vote, meaning residents will see some of the largest permitted increases in their bills. 

The rise will vary across England, with the average B and D bill in London reaching £1,982, an increase of 4.7 per cent. In metropolitan areas, which include cities such as Manchester and Birmingham, the figure will climb to £2,289, up 5.6 per cent. 

Unitary authorities, where a single council provides all local services, will see bills rise to £2,366. While shire counties, where local government is split between county and district councils, will see an average B and D bill of £2,344.  

Social care funding is a key factor in the rise, with 147 councils applying the full Adult Social Care Precept, an additional charge used to fund care services, contributing an extra £34 to the average B and D bill.  

Hollinrake believes Labour is shifting the blame for record tax rises onto local councils. “We are the only ones standing up to a dreadful Labour government determined to crush businesses, raise your taxes and trash the economy.

“This has been engineered by Labour, who have left town halls left to foot the blame when records bills fit the doormat. Vote Conservative on May 1st for a vote against Keir Starmer.” 

Councils will collect £44.1 billion in 2025-26, £2.9 billion more than last year. With budgets under pressure, further hikes could likely follow.