Part of: UK Council Tax 2026 — Complete Guide to Bands, Discounts, Exemptions & Appeals → Council Tax Bands 2026 — Bands A to H Explained
TL;DR: Liverpool City Council's Band D charge for 2026-27 is approximately £2,326, above the England average of £2,280. The 4.99% increase reflects adult social care and infrastructure pressures. Liverpool was subject to government commissioner intervention between 2021 and 2024 following financial mismanagement findings - this provides important context for ongoing fiscal scrutiny. Pay online at liverpool.gov.uk/council-tax.
Last reviewed: 27 April 2026
Council Tax Bands A to H 2026-27 in Liverpool
Liverpool City Council set its 2026-27 Band D charge at approximately £2,326.
| Band | 1991 Property Value | Multiplier | 2026-27 Charge (approx.) |
|---|---|---|---|
| A | Up to £40,000 | 6/9 | £1,551 |
| B | £40,001 - £52,000 | 7/9 | £1,809 |
| C | £52,001 - £68,000 | 8/9 | £2,068 |
| D | £68,001 - £88,000 | 9/9 | £2,326 |
| E | £88,001 - £120,000 | 11/9 | £2,843 |
| F | £120,001 - £160,000 | 13/9 | £3,360 |
| G | £160,001 - £320,000 | 15/9 | £3,877 |
| H | Over £320,000 | 18/9 | £4,652 |
The Band D figure includes precepts from Merseyside Police and Crime Commissioner and Merseyside Fire and Rescue Authority, both of which set their own charges collected through the Liverpool bill. Liverpool City Council's own element, plus these precepts, make up the total.
Liverpool has a high proportion of Band A properties. The city's historic working-class housing stock - terraced houses, ex-council properties, and smaller semi-detached - means that Bands A, B, and C account for the majority of Liverpool's residential stock. This means many Liverpool households pay the Band A rate of approximately £1,551, well below the headline Band D figure.
Check any Liverpool property's band at gov.uk/council-tax-bands.
2026-27 Increase: 4.99% and Ongoing Fiscal Context
Liverpool City Council raised its 2026-27 Band D by 4.99%: 3% core and 2% adult social care precept. From a 2025-26 base of approximately £2,215, the Band D rose by approximately £111.
The increase takes place against a specific and important fiscal background. Liverpool City Council was placed under government commissioner intervention in 2021 following a Best Value inspection that identified serious concerns about governance, financial management, and procurement practices. The intervention involved commissioners appointed by the Secretary of State overseeing specific council functions.
The commissioner regime was wound down progressively between 2022 and 2024 as the council demonstrated improved governance. However, the aftermath of the intervention period - including costs of remediating identified problems, legal costs, and the reputational context - has informed the council's financial position in 2025-26 and 2026-27.
The Institute for Government (IFG) has published analysis of the Liverpool intervention as a case study in local authority financial distress and recovery. This context does not directly affect what Liverpool residents pay as Council Tax, which is set within the normal legal framework, but it provides background to the council's financial management approach.
How Liverpool Compares to Regional and National Averages
Liverpool's Band D of approximately £2,326 sits:
- Slightly above the England average of approximately £2,280
- Above the North West England average
- Comparable to other large urban councils in the North West
Within Merseyside, council Band D rates vary. Wirral, Sefton, and Knowsley set their rates independently, and the Merseyside police and fire precepts are the same across all Merseyside authorities. Liverpool City Council's own element relative to its neighbours reflects Liverpool's particular financial pressures.
MHCLG publishes annual authority-level Band D data showing Liverpool's position in the national ranking.
Liverpool's Council Tax Reduction Scheme
Liverpool City Council operates a working-age Council Tax Reduction scheme. The council has used a percentage-of-bill model, though the specific scheme design is reviewed annually. Maximum reduction levels and the taper structure can be checked in Liverpool's published CTR scheme document for 2026-27.
Apply for CTR at liverpool.gov.uk/council-tax or call 0151 233 3007. Provide income evidence, bank statements, and details of all household members. Processing typically takes 14 to 28 days.
Pension-age claimants use the nationally prescribed scheme (up to 100% reduction). Pension Credit Guarantee recipients qualify for maximum CTR automatically.
Liverpool has historically maintained relatively robust CTR provision, recognising the significant low-income household population in the city. Students at the University of Liverpool, Liverpool John Moores University, and Liverpool Hope University are disregarded for Council Tax and wholly student properties are exempt.
How to Pay Liverpool Council Tax
Online portal: liverpool.gov.uk/council-tax - card payment and Direct Debit setup.
Direct Debit: Set up online or by calling 0151 233 3007. Multiple collection dates available.
Phone: 0151 233 3007. Automated payment line and staffed support.
PayPoint and Post Office: Using the barcode on your demand notice.
Bank transfer: Liverpool's bank details are on the demand notice; quote your account reference.
Standard 10-instalment plan (April to January). Request 12 instalments by contacting the council before end of April.
Council Tax Discounts and Exemptions in Liverpool
Single person discount (25%): Apply online at liverpool.gov.uk/council-tax.
Student exemption: Liverpool has a major student population. Wholly student-occupied properties are exempt. University-issued exemption certificates should be provided to the council.
Severely mentally impaired: Disregarded with appropriate evidence.
Disabled band reduction: Available where the property has been adapted for a disabled resident.
Care leavers: Check Liverpool's current policy for Council Tax exemption or support for care leavers.
Council Tax History: The Commissioner Intervention in Detail
The context of Liverpool City Council's commissioner intervention between 2021 and 2024 is relevant to understanding the council's current financial management environment and why the council's Budget decisions are subject to ongoing scrutiny.
In 2021, the Secretary of State appointed commissioners following a Best Value inspection that identified serious concerns about governance, financial management, procurement, and planning decision-making. The intervention was one of the most significant uses of central government powers over a local authority in recent years. The Institute for Government (IFG) published analysis of the intervention as a case study in local authority governance failure and recovery.
The commissioner regime involved government-appointed commissioners overseeing key council functions - initially procurement, highways, and planning, with the remit expanding in subsequent reviews. The council continued to operate under elected councillors and set its own Council Tax within the normal statutory framework, but commissioners had oversight powers for specified functions.
Between 2022 and 2024, the council made demonstrable improvements in governance, financial management, and operational controls, leading to the progressive winding down of the commissioner regime. By 2024, all commissioner functions had been returned to the elected council.
The legacy of the intervention - including the costs of remediation, legal and professional advice, enhanced audit requirements, and reputational rebuilding - contributed to financial pressures in 2025-26 and 2026-27. These pressures inform the council's decision to take the full 4.99% Council Tax increase available without a referendum.
Council Tax in Liverpool's Student Areas
Liverpool has three major universities: the University of Liverpool (founded 1881, Russell Group), Liverpool John Moores University (LJMU), and Liverpool Hope University. The combined student population is substantial, and student concentration is high in areas including Smithdown Road, Wavertree, Kensington, and Toxteth.
Full-time students are disregarded for Council Tax across all Liverpool postcodes. Properties occupied entirely by full-time students are exempt (Class N). Liverpool City Council has specific guidance for students and landlords of student properties on its website.
A practical note for Liverpool student landlords: if a property is occupied entirely by full-time students for most of the year but has a gap between academic year tenancies, the landlord is liable for Council Tax during that gap at the empty property rate (subject to any applicable exemption). Planning tenancy dates carefully can minimise this exposure.
Empty Property and Second Home Premiums in Liverpool
Liverpool applies:
- Long-term empty properties: 100% premium after one year of vacancy.
- Second homes: 100% premium from April 2025 under the Levelling-up and Regeneration Act 2023.
The Liverpool housing market includes significant volumes of empty and long-term unoccupied properties in some areas, making the empty property premium more material here than in many cities.
Challenging Your Band Through the Valuation Office
Check Liverpool property bands at gov.uk/council-tax-bands. Submit proposals to the Valuation Office (formerly VOA, now part of HMRC since 1 April 2026) at gov.uk/challenge-council-tax-band. The challenge basis is always April 1991 property values.
Liverpool's 1991 housing market reflects the city's economic position at that time - lower relative to national averages in many areas. This means many Liverpool properties are in Bands A and B, which is correct given 1991 values. A challenge to a lower band requires evidence that the property was worth below the current band's 1991 threshold.
Historical Band D Increases 2020-21 to 2026-27
- 2020-21: approximately £1,877
- 2021-22: approximately £1,955 (+4.2%)
- 2022-23: approximately £2,022 (+3.4%)
- 2023-24: approximately £2,103 (+4.0%)
- 2024-25: approximately £2,152 (+2.3%)
- 2025-26: approximately £2,215 (+2.9%)
- 2026-27: approximately £2,326 (+4.99%)
Cumulative increase 2020-21 to 2026-27: approximately 23.9%. Note that the years 2023-24 and 2024-25 saw constrained increases partly reflecting commissioner oversight of the budget process during the intervention regime.
Liverpool Contact Details for Council Tax Queries
- Phone: 0151 233 3007
- Online portal: liverpool.gov.uk/council-tax
- Council Tax Reduction: liverpool.gov.uk/benefits
- In-person: Liverpool City Council, Cunard Building, Water Street, Liverpool L3 1AH (confirm availability on the council's website)
Liverpool City Council 2026-27 Budget: What the Money Is Spent On
Liverpool City Council's gross revenue budget for 2026-27 is approximately £700 million to £800 million. Council Tax contributes approximately 18 to 20% of gross expenditure - a higher proportion than many comparable cities, reflecting Liverpool's reduced central government grant funding in some areas and the ongoing financial legacy of the intervention period. The remainder is funded by central government grants (Revenue Support Grant, Improved Better Care Fund, New Homes Bonus), retained business rates, Housing Benefit subsidy, and fees and charges.
The three dominant expenditure areas in Liverpool's 2026-27 budget are:
Adult social care: Liverpool's adult social care budget has grown significantly, driven by rising care costs, minimum wage increases, and a large population with care and support needs arising from the city's deprivation profile. Adult social care is the single largest net expenditure area.
Children's services and looked-after children: Liverpool has a significant looked-after children population and substantial SEND caseload. Placement costs for children in care have risen sharply across the national market. Children's services costs represent one of the largest single pressures in the 2026-27 budget.
Housing and homelessness: Liverpool faces sustained demand for temporary accommodation and homelessness prevention. The city's private rental market, while cheaper than many English cities, has tightened considerably, and housing-related costs are a material and growing budget pressure.
Liverpool declared a balanced budget for 2026-27 within the 4.99% increase envelope, incorporating savings measures and use of reserves. The 2026-27 budget paper is available on liverpool.gov.uk in the council's February 2026 budget-setting agenda papers.
Liverpool City Region Combined Authority Precept
Liverpool residents pay a small additional precept for the Liverpool City Region Combined Authority (LCRCA), which covers Liverpool, Sefton, Knowsley, Wirral, St Helens, and Halton. The LCRCA precept at Band D for 2026-27 is approximately £30 to £40 - a modest addition to the main Liverpool charge, but appearing as a separate line on the demand notice.
The LCRCA budget is set by the Metro Mayor of Liverpool City Region. It covers the combined authority's responsibilities: the Merseytravel bus and rail network, regional economic development, housing investment, and the devolved adult education budget. The LCRCA precept has grown modestly since the mayoral combined authority was established, reflecting expanding functions.
Liverpool residents' total Band D bill therefore consists of: Liverpool City Council element + Merseyside Police and Crime Commissioner precept + Merseyside Fire and Rescue Authority precept + LCRCA precept. Each appears separately on the demand notice.
Property Stock Profile by Band in Liverpool
Liverpool has approximately 230,000 chargeable dwellings, according to MHCLG Council Tax Base statistics (CTB1 data). The band distribution is one of the most heavily weighted towards lower bands of any English core city.
- Band A accounts for the largest share of Liverpool's residential stock - a significantly higher proportion than the national average. This reflects the city's 1991 property values being low relative to the national average, with much of the city's Victorian terraced housing stock valued below £40,000 in April 1991. Liverpool's post-industrial areas (Toxteth, Everton, Kensington, Anfield) have dense concentrations of Band A properties.
- Band B and C cover a wide range of stock including post-war semi-detached, interwar terraced, and some purpose-built flats.
- Bands D and above are relatively rare, concentrated in Woolton, Mossley Hill, Allerton, and the south Liverpool suburbs where 1991 values were higher.
Liverpool's Band D equivalent figure is substantially below what a simple dwelling count would suggest, because the concentration of Band A and B properties (which generate less than the Band D rate) constrains the council's revenue base. This is a structural revenue disadvantage that makes Liverpool disproportionately dependent on central government grant funding.
Council Tax Collection Rates in Liverpool
Liverpool City Council's in-year Council Tax collection rate has typically been in the range of 93 to 95% - below the English average of approximately 97 to 98%. The lower collection rate reflects the city's high proportion of households in financial difficulty, large Council Tax Reduction caseload, and post-intervention period administrative challenges in revenue collection.
The enforcement sequence follows the standard statutory process: reminder, final notice, magistrates' court liability order (court costs approximately £60 to £90), then enforcement agent instruction, Direct Earnings Attachment, benefit deductions, or charging order on property. Liverpool's CTR2 statistics return is published annually and contains the collection rate and write-off data.
Frequently Asked Questions
Was Liverpool's Council Tax affected by the government intervention?
The commissioner intervention did not directly change Council Tax rates, which are set through the normal democratic council budget-setting process by elected councillors each February. which are set through the normal democratic budget process. However, the intervention and its legacy have shaped Liverpool's financial management approach and constrained some spending choices. Council Tax rates in Liverpool are set within the standard English statutory framework, and the 2026-27 rate reflects the normal 4.99% maximum increase, not any special commissioner-related levy.
What is the Band A Council Tax rate in Liverpool for 2026-27?
Band A is approximately £1,551 for 2026-27, representing 6/9 of the Band D rate of approximately £2,326. Band A is the most common band in Liverpool for older residential stock. Verify the exact figure with Liverpool City Council or your demand notice.
I'm a student at the University of Liverpool - how do I get Council Tax exemption?
If you are a full-time student, you are disregarded for Council Tax. If all residents at your property are full-time students, the property qualifies for Class N exemption (zero Council Tax). Obtain a Council Tax Exemption Certificate from the University of Liverpool's Student Services and provide it to Liverpool City Council. If you live with non-students, those residents are liable, but you are still disregarded as a student.
How do I apply for Liverpool Council Tax Reduction?
Apply online at liverpool.gov.uk/council-tax or call 0151 233 3007. You need proof of identity, National Insurance number, income evidence (payslips, benefit award letters, bank statements), and details of all household members. UC claimants must apply separately - UC does not include Council Tax help.
Liverpool's Band D is above the national average - why?
Liverpool's above-average Band D reflects the city's significant adult social care costs, its relatively small commercial property tax base, and the ongoing financial pressures following the commissioner intervention period. As a metropolitan district council, Liverpool's precept includes Merseyside Police and Fire contributions. These combined pressures have produced a rate above the England average despite Liverpool being a city with significant economic deprivation.
How we verified this
Band D figures and increase percentages are from Liverpool City Council's published 2026-27 budget and MHCLG Council Tax level statistics. The commissioner intervention context is from the Secretary of State's published Best Value inspection reports and IFG analysis. CTR scheme provisions are from Liverpool's published scheme. The Valuation Office (formerly VOA, now part of HMRC since 1 April 2026) is sourced from gov.uk and HMRC announcements.
Sources & Verification
- Liverpool City Council Council Tax: https://www.liverpool.gov.uk/council-tax
- MHCLG Council Tax statistics: https://www.gov.uk/government/collections/council-tax-statistics
- Valuation Office (formerly VOA): https://www.gov.uk/government/organisations/valuation-office-agency
- gov.uk Council Tax band lookup: https://www.gov.uk/council-tax-bands
- Local Government Finance Act 1992: https://www.legislation.gov.uk/ukpga/1992/14/contents
- Institute for Government local government finance analysis: https://www.instituteforgovernment.org.uk/
- Levelling-up and Regeneration Act 2023: https://www.legislation.gov.uk/ukpga/2023/55/section/80
- Council Tax (Administration and Enforcement) Regulations 1992: https://www.legislation.gov.uk/uksi/1992/613/contents
This article is for informational purposes only and does not constitute legal, financial, or tax advice. Council Tax rules vary by local authority and change annually. Always verify current rates and rules with your local council and gov.uk before making any decision.
