UK households are set to face rising council tax costs as several local authorities prepare for significant tax increases in the coming weeks. While most councils are keeping their hikes within the usual limits, some have been granted special permissions to exceed the 5% threshold, leading to concerns about financial pressure on residents.
According to BirminghamMail, some households could see their annual bills rise by over £200, depending on their location.
Certain Welsh councils are implementing some of the highest increases, while in England, a select few have received government approval to surpass the standard council tax cap without requiring a referendum.
These changes come amid ongoing debates about local government funding, the cost-of-living crisis, and the fairness of the current tax system.
As tax rates rise, questions emerge about how these funds will be used, whether they are sustainable, and how they will affect the most vulnerable households in the UK.
Significant council tax increases in Wales
Five councils in Wales are set to implement some of the most substantial council tax hikes in the country. Conwy County Borough Council leads the list with a 10% increase, raising annual bills from £2,135.86 to £2,349.45—an increase of £213.59. Ceredigion County Council follows closely with a 9.9% rise, bringing bills up by £208.28 to £2,312.17 per year.
Other Welsh councils making significant increases include Carmarthenshire County Council (9.75% increase, £200.08 more per year), Flintshire County Council (9.5%, £195.93 increase), and Wrexham County Borough Council (9.5%, £191.33 more per year).
England sees tax hikes, with Bedford leading
While the majority of English councils are increasing council tax by 4.99%, some have been granted special permission to exceed this threshold. Bedford Council has received approval for a 9.99% rise, resulting in an additional £170 per year for Band D households, raising their bills from £1,701.86 to £1,871.89.
Government figures indicate that 85% of the 139 top-tier authorities in England planning tax hikes are opting for the maximum 4.99% increase allowed without a referendum.
However, under normal rules, any council wishing to raise tax rates by 5% or more must hold a local referendum—except in cases like Bedford, where special permission was granted.
Impact on household budgets
The Resolution Foundation reports that the poorest 20% of households in the UK already allocate 4.8% of their income to council tax, compared to 1.5% for the wealthiest 20%.
In contrast, back in 2002-03, the poorest households paid only 2.9% of their income on council tax, indicating a sharp rise in financial burden over the past two decades.
Economist Lalitha Try from the Resolution Foundation argues that council tax increasingly resembles the poll tax it was originally designed to replace.
The growing disparity between low-income and high-income households paying council tax is expected to widen the financial gap, particularly amid the ongoing cost-of-living crisis.
