England Councils Hit Residents with Maximum 4.99% Tax Hike for Third Year Amid Budget Woes

March 17, 2025
England Councils Hit Residents with Maximum 4.99% Tax Hike for Third Year Amid Budget Woes
  • For 70% of England's population, this marks the third year in a row of tax increases at the maximum legal limit.

  • This year, a total of 153 upper-tier councils are raising bills by 4.99%, and when including those raising by 4.5% or more, the figure rises to 94%.

  • As councils grapple with severe funding challenges, they are making tough decisions about tax increases to maintain essential services.

  • In April 2025, nearly 88% of local councils in England will impose a 4.99% council tax increase, marking the third consecutive year of maximum allowed hikes.

  • The Local Government Association has emphasized that while council tax is a vital funding source, it cannot meet the extensive financial pressures faced by local services.

  • Bradford is among the councils allowed to raise taxes significantly, with an increase of 9.99%.

  • Council leaders attribute these increases to over a decade of funding cuts and rising costs in children's and adult care services, leading to tough financial decisions.

  • This year’s maximum increase is the highest amount councils can raise without holding a referendum, reflecting ongoing financial pressures.

  • The 4.99% cap on council tax increases includes a 2% precept for adult social care, which has been in effect for the last three years.

  • Only nine councils, including Sunderland and Doncaster, are raising bills by less than 4.5%, highlighting the widespread nature of the tax increases.

  • In the South East, all 20 councils approved increases of 4.99% or more, with Windsor & Maidenhead raising rates by 8.99%.

  • In response to fiscal crises, the Government has provided exceptional financial assistance to 30 councils this year, helping them balance budgets from prior years.

Summary based on 3 sources


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