TL;DR
- Most English councils raised Council Tax by 4.99 per cent for 2026/27, the maximum under the referendum threshold
- Seven councils were granted permission to raise it by more: Worcestershire, Shropshire, North Somerset, Trafford, Warrington, Windsor and Maidenhead, and Bournemouth, Christchurch and Poole
- The average annual rise is approximately £114 for a Band D bill
- Welsh councils averaged 4.9 per cent and Scottish councils raised bills by between 4 and 10 per cent
- Council Tax is regressive: the poorest 10 per cent of households spend around 5 per cent of income on it, the richest around 1 per cent
Last reviewed: 15 May 2026
Key facts
- Standard referendum cap: 4.99 per cent (covers 2.99 per cent core plus a 2 per cent adult social care precept for councils with social care responsibilities)
- Above-cap councils: Worcestershire, Shropshire, North Somerset, Trafford, Warrington, Windsor and Maidenhead, Bournemouth Christchurch and Poole
- Typical Band D annual increase: Approximately £114 in councils raising by 4.99 per cent
- Wales average: 4.9 per cent
- Scotland range: 4 per cent to 10 per cent
- Bands: A to H in England, Wales and Scotland (Wales A to I)
What the referendum cap is and how it was exceeded
English councils with social care responsibilities can raise Council Tax by up to 2.99 per cent on the core element plus 2 per cent on the adult social care precept without holding a local referendum. A combined rise above 4.99 per cent normally requires a referendum. The government can grant exceptional financial support to specific councils that allows them to raise Council Tax beyond the threshold without a referendum. Seven councils received that permission for 2026/27.
Where the rises landed
The seven councils granted permission to raise Council Tax above 4.99 per cent for 2026/27 are Worcestershire, Shropshire, North Somerset, Trafford, Warrington, Windsor and Maidenhead, and Bournemouth Christchurch and Poole. Some councils in this group raised bills by close to 9 per cent. The figures reported by individual councils combine core Council Tax, the adult social care precept where applicable, and precepts from parish councils, police and crime commissioners, and fire authorities, so the headline percentage on a bill can differ from the headline percentage for any one tier.
How Wales and Scotland compare
Welsh councils raised Council Tax by an average of 4.9 per cent for 2026/27. Welsh councils set their own rates and are not subject to the English referendum cap. Scottish councils raised bills by between 4 per cent and 10 per cent. Scotland uses different valuation bands and rates from England. Northern Ireland uses domestic rates rather than Council Tax, set by the Department of Finance and individual councils.
Council Tax Reduction and other routes to reduce a bill
Council Tax Reduction is a means-tested scheme that can reduce a Council Tax bill, sometimes to zero. Each English council runs its own scheme. Pensioner schemes follow a national framework. Working-age schemes vary by council. A single occupant of a property is entitled to a 25 per cent discount. Properties occupied only by people who are disregarded for Council Tax, for example full-time students or severely mentally impaired residents, may attract a 100 per cent disregard or exemption. A second adult rebate can apply where a non-dependant on a low income lives with the bill-payer.
Banding challenges and the Valuation Office Agency
Council Tax bands in England and Scotland were set on 1991 property values. The Valuation Office Agency handles banding challenges in England and Wales. A formal challenge can be made within six months of becoming the bill-payer, or at any time if the property has been significantly altered, the area has changed materially, or there is evidence of a successful neighbouring challenge in a comparable property. Challenges can result in a band increase as well as a decrease, so the case for a challenge should be evidenced before lodging it.
Disclaimer. This article is for general information only and does not constitute financial, tax, immigration or legal advice. Figures, thresholds and rules can change. Always check the current position with the relevant authority (GOV.UK, HMRC, FCA, Ofgem or the appropriate regulator) before acting.
Frequently asked questions
How is the 4.99 per cent cap calculated?
It combines a 2.99 per cent ceiling on the core Council Tax element and a 2 per cent ceiling on the adult social care precept for councils with social care responsibilities. Councils without social care responsibilities are capped at 2.99 per cent for the core element.
Why did some councils raise bills above 4.99 per cent?
The government granted exceptional financial support to seven councils with severe financial pressures, allowing them to raise Council Tax above the standard referendum threshold for 2026/27 without holding a referendum.
Does my band move automatically if I improve my home?
No. The Valuation Office Agency revisits a band when a property is sold after a significant improvement or when a material change in circumstances is reported. Improvements alone do not trigger an automatic re-banding.
Who is eligible for Council Tax Reduction?
Eligibility depends on income, savings, household composition and the local scheme. Pensioners are covered by a national framework. Working-age schemes vary by council. Apply through your local council's website.
Can I challenge my band?
Yes. In England and Wales, the Valuation Office Agency handles challenges. Provide evidence of comparable properties in lower bands or of a successful neighbouring challenge. A challenge can result in a higher band as well as a lower one.
