A majority of England’s top-tier councils intend to raise council tax to the maximum 4.99% for 2026/27, with 125 of 153 authorities (82%) taking the limit, down slightly from last year’s 134 (88%).

Regional patterns show broad adoption of the maximum increase in London and parts of the North, East Midlands, and Yorkshire & the Humber, while the South East and parts of the South West display more variability, aided by central funding injections or balanced budget practices.

The government highlights taxpayer considerations and substantial total funding for next year—about £78 billion, up 6% from 2025/26—while noting many areas will still need to raise council tax to cover service demands, especially social care.

These plans follow reforms to the local government finance system that aim to distribute funding more fairly, featuring multi-year settlements and a shift in grant allocations, though the Local Government Association warns funding may still lag inflation and rising demand.

Examples of varied spending decisions include Coventry at 3.95%, Rutland at 2.00%, Leicestershire at 2.99%, Lincolnshire at 2.90%, and Durham at 1.99%, illustrating differing local pressures and constraints.

A small number of councils have sought or been granted permission to exceed the 4.99% cap, including North Somerset and Shropshire at 8.99%, Worcestershire up to 8.98%, and Trafford, Warrington, and Windsor & Maidenhead at up to 7.49%.

Political control influences these plans, with Labour-led, Conservative-led, Lib Dem-led, and Reform-led authorities showing distinct patterns, and Reform-led councils sometimes pursuing maximum increases under specific conditions.

In total, 125 authorities plan the 4.99% increase, 25 councils are not, with some of those opting for smaller rises and Reform UK-led councils diverging in parts of their plans.