Households in Bradford will see a 10% rise in their council tax bill, while Newham residents will experience a 9% increase on their annual payment.
Every year, local authorities with social care duties – services that provide support for people in the area – can raise council tax bills by 4.99% without referendum, whereas councils without those duties can increase the bill by 2.99%.
Households in the region of Windsor and Maidenhead will pay a further 4% on top of the standard 5% rise.
Angela Rayner, the Secretary of State for Housing, Communities and Local Government, also announced council taxpayers in Somerset, Birmingham and Trafford will see their bills for the 2025/26 financial year climb by 2.5%.
The changes will affect an estimated 3.25 million people across the six regions.
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Last year, households in England were in £6bn worth of council tax arrears, with the average amount owed in debt reaching £1,672, according to National Debtline.
For the 2023/24 financial year, around 65% of the UK paid council tax Bands A, B, or C, which ranged from an estimated yearly cost of £1,350 for Band A to £1,800 for Band C.
So, the hikes to the six regions impacted by the hikes could be up to £180 a year.
Rayner said the reasons for the higher-than-usual bills are “as a result of the 14 years of decline and instability overseen by the previous Government”.
She said: “We know there are large numbers of councils in significant financial difficulty. This financial legacy of the previous Government has resulted in a record number of councils engaging with the Government about support to help them set their budgets, and a record number of these councils asking for additional council tax increases.”
Rayner added: “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.”
Councils can bypass the 5% increase to council tax without a public vote if the Government believes the area needs extra financial help for local services.
‘Yet another squeeze on finances’
Andy Wood, tax barrister at Tax Natives, said: “For many taxpayers, these increases will feel like yet another squeeze on their finances, especially when combined with rising living costs and National Insurance hikes. It’s important that councils are transparent about why these increases are necessary so residents see noticeable improvements in their local services.”
Wood added: “While additional central Government funding has been announced, it appears that many councils still find themselves in a tricky position. The concern is that this could set a precedent, where more councils try to exceed the cap, leading to even greater burdens on households in the coming years.”
If you are struggling to pay a council tax bill, Wood recommended looking into whether you can get any exemptions or discounts to help with covering the bill.
There is also a 25% discount available if you are a single occupier, which was extended to next year in the Autumn Budget.
