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Saturday, Feb 15, 2025

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Six English Councils Granted Permission to Raise Council Tax Bills Above Cap Amid Financial Struggles

Six councils in England are allowed to increase council tax rates by up to 10% due to financial distress, despite a national cap on tax hikes.
Six English councils have been granted approval by ministers to raise their council tax bills by up to 10% from April, well above the typical 4.99% cap, as they face significant financial difficulties.

The councils, including Labour-run Bradford and Newham, and Lib Dem-controlled Windsor and Maidenhead, will be able to increase tax rates to avoid insolvency.

These measures come amid a surge in requests for council tax hikes and government support, as local authorities struggle with years of central funding cuts.

Bradford can raise taxes by up to 9.99%, Newham by 8.99%, and Windsor and Maidenhead by 8.99%, while Somerset, Trafford, and Birmingham can raise rates by 7.4%.

A number of other councils, including Hampshire, Slough, and Cheshire East, had their requests for higher increases denied.

Despite the government's commitment to low taxes, officials acknowledge the financial pressures faced by local governments.

Housing, Communities, and Local Government Secretary Angela Rayner emphasized the need for difficult decisions to address the financial strain, but insisted that any tax increases would be carefully balanced with taxpayer interests.

For example, Bradford's 9.9% increase would mean an additional £170 on a Band D property, although the council maintains its rates will remain lower than those of neighboring authorities.

A referendum will be held by Hampshire County Council, which sought a 14.99% rise.

The rise in requests for exceptional financial support highlights the growing pressure on councils, particularly in the face of increasing demand for services like social care, homelessness assistance, and special educational needs provision.
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