The six areas that will see the highest council tax rises in 2025

The government has granted an above 4.99 per cent council tax increase for six councils in England.

This comes after, in a survey from the County Councils Network, 93 per cent of county and unitary councils said they would have to raise council tax by the maximum permitted (4.99 per cent without holding a referendum).

How does council tax work?

Council tax is based on the value of domestic property. The amount of council tax you pay depends on the valuation band your home falls into. The bands range from A-G, with the smallest and cheapest properties falling into band A and the largest and most expensive homes coming under band G.

You usually have to pay council tax if you’re 18 and over. A full council tax bill is based on at least two adults living in a home, but people who live on their own can claim a discount of up to 25 per cent.

Councils with social care responsibilities can raise council tax by up to 4.99 per cent every year, without triggering a referendum. Others can increase it by up to 2.99 per cent.

How much is council tax currently?

The average band D council tax is currently £1,893 across London, £2,169 in metropolitan areas, £2,248 in unitary areas and £2,237 in shire areas.

According to government figures, Rutland, Nottingham and Dorset residents are paying the highest council tax bills, with residents of Wandsworth, Westminster, and the City of London paying the lowest amounts.

Which councils have been granted an above 4.99 per cent council tax rise?

Bradford Council asked the government for a council tax increase of between 9.99 per cent and 14.99 per cent. The government has now approved a 9.99 per cent council tax increase.

Birmingham City Council requested permission from the government to raise council tax by 9.9 per cent. The government granted the council a 7.5 per cent increase.

The Royal Borough of Windsor and Maidenhead council asked for permission to raise council tax by 24.99 per cent, however the government approved a 9.99 per cent increase.

Newham Council requested permission to increase council tax by 9.99 per cent, but were granted a 8.99 per cent raise.

A council tax increase of 7.5 per cent has been approved for both Somerset Council and Trafford Council.

Cheshire East Council asked the government for permission to increase council tax by 9.9 per cent, but their request was rejected.

Hampshire Council requested permission to raise council tax by 14.99 per cent, but the government rejected their request.

What has the government said on above 4.99 per cent council tax increases?

Angela Rayner, Secretary of State for Housing, Communities and Local Government, said: “Having carefully considered requests from councils, the government has agreed small increases for six councils.

“These are difficult decisions that government has not taken lightly. We recognise the importance of limited increases in helping to prevent these councils falling further into financial distress – but we have been clear this must be balanced with the interests of taxpayers.

“We have agreed to a limited number of requests and in all cases have not agreed to the full amount requested. Where we have agreed, it is only for councils with amongst the lowest levels of council tax, and where we expect, even after these increases, residents will still be paying less than the average compared with similar councils. At a national level, even with these increases, the overall increase in council tax is not expected to exceed last year’s.

“Following confirmation of these referendum principles, it will be for individual councils to take final decisions on setting council tax in their areas, having reached agreement locally that the increases are necessary to the council's financial recovery. I have been clear to all councils that they should take whatever steps locally they consider will help to protect the most vulnerable residents from the impact of any additional increase.”