In February 2025, the UK witnessed a sharp increase in council tax rates across multiple regions, as 29 local councils announced hikes of up to £214 a year. While council tax increases are not unprecedented, these hikes exceed the standard 5% rise and are expected to place a substantial financial burden on many households. The hikes vary significantly, with some areas facing a 10% increase, the maximum allowed under the government’s guidelines.
This article will explain the factors driving these increases, the councils most affected, and provide practical advice on how to manage the higher bills. Whether you’re concerned about your household budget or looking for ways to mitigate the impact, this guide will walk you through everything you need to know.
Council Tax Alert
| Key Point | Details |
|---|---|
| Number of Councils Affected | 29 councils across the UK. |
| Maximum Increase | Up to £214 in some areas. |
| Percentage Increases | Some councils raising rates by 10% (the maximum allowed). |
| Key Affected Areas | North Lanarkshire, Bedford, Conwy, Newham, Windsor, and Maidenhead. |
| Reason for Increases | Financial pressure from underfunding, rising costs, and inflation. |
| Official Website for Local Information | Local Government Association |
| Key Recommendations | Check your local council website, inquire about support schemes, and budget accordingly. |
The council tax hikes expected in 2025 are the result of financial pressures facing local governments, including underfunding, rising demand for services, and inflation. While these increases may feel burdensome, it’s important to take advantage of available support programs, budget wisely, and explore options for reducing your bill. Understanding the rationale behind the increases, how your tax band is determined, and how you can seek assistance will help you manage the change more effectively.
Why Are Councils Increasing Council Tax?
Council tax is an essential funding tool for local governments in the UK, helping to pay for services like healthcare, education, public safety, waste collection, and social care. Each year, local authorities determine how much tax will be charged to residents in their area. For most councils, this increase is capped at 5%, but in 2025, the government has allowed some councils to go beyond that threshold due to increasing financial pressures.
Here are some of the main reasons driving these increases:
1. Financial Strain on Local Authorities
Over the past decade, local governments have faced significant budget cuts from central government. These cuts have left many councils struggling to maintain the level of public services that residents rely on. With rising inflation and the cost of providing services going up, councils are turning to tax hikes as a way to balance their budgets.
2. Increasing Demand for Public Services
There has been a marked rise in the demand for social care, healthcare services, and other local government services, especially as the population ages. This surge in demand places additional pressure on already limited resources. To cover the costs, councils have been forced to raise taxes.
3. Rising Costs and Inflation
Inflation affects everything from the cost of fuel and materials to the salaries of council staff. As these costs continue to rise, councils need to increase their revenue to maintain current service levels. Without these increases in council tax, many councils would not be able to deliver essential services, and services could face cuts or reduced hours.
Key Affected Areas
Several councils are imposing significant increases in their council tax rates. Below are some examples of areas where residents can expect to pay more:
Scotland
- North Lanarkshire has received approval for a 10% rise in council tax, making the annual Band D bill increase from £1,320.78 to £1,452.86.
- Scottish Borders and East Lothian are also expected to raise their rates by similar amounts.
Wales
- Conwy County Borough plans a 10% hike, raising Band D bills by £213.59 to £2,349.45.
- Ceredigion and Pembrokeshire are both considering similar increases.
England
- Bedford council has approved a 9.99% increase, adding £170 to Band D bills, which now total £1,871.89.
- Newham and Windsor & Maidenhead are also among the councils raising their rates by around 9%.
How to Manage the Increase in Council Tax
With higher council tax bills on the horizon, it’s important to take proactive steps to manage the impact. Here’s how you can handle the increase:
1. Check for Local Support Programs
Many councils offer Council Tax Reduction Schemes, designed to help low-income households manage their tax bills. You may be eligible for a reduction based on factors like your income, household size, or health status. If you’re facing financial hardship, inquire with your local council about available assistance or hardship funds.
For example:
- Single Occupancy Discounts: If you live alone, you could qualify for a 25% discount on your council tax bill.
- Disability Reductions: If someone in your household has a disability, you may be eligible for a discount.
Visit your local council’s website for specific information on the available programs.
2. Understand Your Council Tax Band
Your council tax is determined by the value of your property, which is assigned to one of eight tax bands (A to H). If you’re unsure of your council tax band, you can find this information on the official GOV.UK website. Properties in higher bands (such as F, G, and H) typically face higher tax bills.
If you believe your council tax band is incorrect, you can challenge it. The Valuation Office Agency (VOA) handles disputes regarding council tax bands. If your band is too high, you could save money by getting it reassessed.
3. Budget for the Increase
Now is the time to re-evaluate your household budget. With the expected increase in council tax, review your monthly spending to see if there are areas where you can cut back. For instance, consider switching to a more affordable energy provider or reviewing subscription services you no longer need.
Setting aside a specific amount each month for your council tax bill can help prevent financial stress when the bill comes due.
4. Spread the Payments
If the increase is substantial, you may be able to spread your payments over the course of the year. Most councils offer monthly or quarterly payment options, so check with your local authority to find out what works best for you.
How Much Will My Council Tax Go Up?
The increase will vary depending on where you live. In some areas, council tax could rise by as much as 10%. For a Band D property, this could mean an increase of anywhere between £130 and £214 per year. The specific amount will depend on your local council’s decision.
For example:
- In North Lanarkshire, residents will face a 10% rise, meaning an additional £132.08 for Band D properties.
- In Conwy, the increase will be £213.59 for a Band D property.
It’s worth visiting your local council’s website to check the exact increase for your area.
FAQs About Council Tax Increases
Q1: How can I check if my council is increasing rates?
You can visit your local council’s website, where they will publish information about any upcoming tax changes. Councils are required to notify residents about increases ahead of time, so you should have plenty of notice.
Q2: What if I cannot afford the new rates?
If you’re struggling to pay, reach out to your council’s Council Tax Support team. They may be able to offer you a reduction or help you set up a payment plan.
Q3: Can my council tax rate change mid-year?
Usually, council tax rates are set at the start of the financial year (April). However, in some cases, mid-year adjustments can happen if there are significant changes in local government funding or circumstances.
Q4: What if I live in a property that is exempt from council tax?
Certain properties, such as student homes or those occupied by people with disabilities, may be exempt or eligible for a discount. Check the official exemptions page for more information.
