Households across England are set to face a 5% increase in council tax, pushing annual charges for Band D properties up by £106, amid efforts by local authorities to manage essential services with constrained budgets.
England’s households are poised for an average 5% hike in council tax this year, pushing the annual charge for a Band D property up by £106 to £2,171. This increase is part of local authorities’ efforts to manage essential services amid financial pressures. The Department for Levelling Up, Housing, and Communities revealed that all 153 upper-tier councils are adding up to a 2% social care precept, contributing to a total council requirement of £41.2 billion – up £2.5 billion from the previous year.
The rise in council tax, marking a 20% increase since the 2020/21 period, varies regionally. In London, Band D households will face bills averaging £1,422, whereas those in metropolitan areas outside London and unitary counties will see their bills rise to £1,837 and £1,886, respectively. Notably, Birmingham City Council has approved a significant 9.99% increase, setting Band D bills at £1,793.
Despite an extra £600 million in funding for councils, financial challenges persist, with leaders expressing concern over the sustainability of funding for local services. The escalation in council tax underscores the pressing need for a long-term solution to safeguard service delivery amidst escalating demands and constrained budgets.