Save, make, understand money

Household Bills

Council tax increases expected to be at four-year low

Paloma Kubiak
Written By:
Paloma Kubiak

Most residents in England are expected to see the lowest increase in council tax bills since 2016 this year, it has been revealed.

The government has confirmed a multi-billion pound spending increase for councils which should mean council tax rises are kept at low levels.

As part of the £49.2bn funding for 2020/21, local government secretary, Robert Jenrick, said average council tax increases are expected to be the lowest since 2016/17.

A referendum will be required if local authorities propose raising the tax above a 2% threshold.

He said: “This government is committed to levelling up every part of the country, investing in every region and giving communities control over making the decisions which are right for them.

“That’s why we’re confirming the biggest increase in councils’ spending power for a decade across England, while protecting residents from excessive rises in council tax.”

The multi-billion pound funding – the biggest increase in councils’ spending power for a decade – will boost social care services, support rural areas and reward local authorities for the number of new homes built locally.