{"id":5754,"date":"2025-04-01T07:54:35","date_gmt":"2025-04-01T11:54:35","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2025\/04\/01\/what-is-council-tax-and-how-much-did-it-go-up-in-april\/"},"modified":"2025-04-01T07:54:35","modified_gmt":"2025-04-01T11:54:35","slug":"what-is-council-tax-and-how-much-did-it-go-up-in-april","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2025\/04\/01\/what-is-council-tax-and-how-much-did-it-go-up-in-april\/","title":{"rendered":"What is council tax and how much did it go up in April?"},"content":{"rendered":"
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<\/picture><\/span>Image source, <\/span>Getty Images<\/span><\/p>\n<\/figure>\n<\/div>\n

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By Sam Francis<\/p>\n

Political reporter, BBC News<\/p>\n<\/div>\n

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Council tax bills rose rise for millions of households in England, Scotland and Wales on 1 April. <\/b><\/p>\n

Council finances are “extremely challenging” and there could be further cuts to services, the Local Government Association has warned.<\/p>\n<\/div>\n

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What is council tax and who pays it? <\/span><\/h2>\n<\/p>\n
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Council tax is a compulsory charge on properties in England, Scotland and Wales. <\/p>\n

It is set by local authorities to raise money for providing services. <\/p>\n

Typically, anyone who is over 18 and owns or rents a home has to pay council tax. <\/p>\n

However, there are some exemptions and discounts.<\/p>\n

Someone living alone, for example, is entitled to a 25% reduction, external<\/span>, and properties occupied only by students are exempt.<\/p>\n

Some discounts are available if you – or someone you live with – has a disability, external<\/span>.<\/p>\n

Northern Ireland uses a domestic rates system, external<\/span> instead of council tax.<\/p>\n<\/div>\n

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How much are council tax bills going up in England?<\/span><\/h2>\n<\/p>\n
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Most councils in England were expected to put bills up by the maximum amount allowed, the County Councils Network said.<\/p>\n

That’s 4.99% (without triggering a referendum) for those with responsibility for social care.<\/p>\n

All but three of London’s local authorities are putting up bills by 4.99%.<\/p>\n

Smaller councils without social care duties can increase bills by up to 2.99%.<\/p>\n

For 2025-26, the government is letting six areas introduce bigger rises.<\/p>\n

Bradford Council increased bills by 10% and they rose by 9% in Newham, and Windsor and Maidenhead.<\/p>\n

Birmingham, Somerset and Trafford put bills up by 7.5%.<\/p>\n

In April 2024, the average increase for a band D property in England was \u00a3106, external<\/span>, which took the average bill to \u00a32,171.<\/p>\n<\/div>\n

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<\/picture><\/span>Image source, <\/span>Getty Images<\/span><\/p>\n<\/figure>\n<\/div>\n

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What is happening to council tax in Scotland and Wales?<\/span><\/h2>\n<\/p>\n
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Council tax rates in Scotland <\/b>had been frozen or had limited increases since 2007, but went up in April. Bills rose by at least 10% in 13 areas.<\/p>\n

The country’s 32 councils had warned they faced a potential shortfall of \u00a3392m in 2025-26, which could rise to \u00a3780m the following year.<\/p>\n

The Scottish government says it is giving councils an extra \u00a31bn in 2025-26 to help limit increases. <\/p>\n

Council tax rates in Wales <\/b>increased by between 5% and 9.2% in April.<\/p>\n

Wales’ 22 local authorities were given \u00a3253m in December’s draft budget, but council leaders said more was needed.<\/p>\n<\/div>\n

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How is council tax calculated? <\/span><\/h2>\n<\/p>\n
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How much you pay depends on your property’s council tax band. Broadly speaking, the more expensive the property, the higher the band.<\/p>\n

In England and Scotland, bands are based on the price the property would have sold for in 1991. Wales uses 2003 prices and Northern Ireland 2005 prices.<\/p>\n

You can check your home’s band in:<\/p>\n<\/div>\n

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Council tax bills also include additional charges.<\/p>\n

One goes towards the cost of care homes and other adult social care services. Another is set by local police and fire authorities to help fund their work.<\/p>\n

Some cities with mayors, such as London and Manchester, can also add a separate charges for other services.<\/p>\n<\/div>\n

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What does council tax pay for?<\/span><\/h2>\n<\/p>\n
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Council tax funds local services, including:<\/p>\n<\/div>\n

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    rubbish collection<\/p>\n<\/li>\n

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    street lighting<\/p>\n<\/li>\n

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    libraries<\/p>\n<\/li>\n

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    police and fire services<\/p>\n<\/li>\n

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    youth clubs<\/p>\n<\/li>\n

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    parks and recreation facilities<\/p>\n<\/li>\n

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    care services <\/p>\n<\/li>\n<\/ul>\n<\/div>\n

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    <\/picture><\/span>Image source, <\/span>Getty Images<\/span><\/p>

    Image caption, <\/span><\/p>\n

    Council tax helps to fund local services such as playgrounds<\/p>\n<\/figcaption><\/figure>\n<\/div>\n

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    Where else do councils get their money?<\/span><\/h2>\n<\/p>\n
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    About half of local authority funding comes from council tax, according to the Institute for Government (IFG). <\/p>\n

    Councils in England can also raise money by charging for services including parking, swimming pools and planning applications. <\/p>\n

    Most of the rest comes from a combination of business rates and central government grants.<\/p>\n

    Labour has promised \u00a32bn of central government funding for English councils in the year from April 2025, an extra \u00a3700m on top of the \u00a31.3bn announced in October’s Budget. <\/p>\n

    But \u00a3515m of that has already been earmarked to pay for higher National Insurance (NI) contributions from April.<\/p>\n

    Councils have also had to deal with inflation, higher energy costs and increases to the National Living Wage. <\/p>\n

    The government is consulting on directing more money to deprived councils in England from 2026.<\/p>\n<\/div>\n

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    What happens when a council goes ‘bankrupt’?<\/span><\/h2>\n<\/p>\n
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    Councils cannot technically go bankrupt, but if they cannot balance their budget for the financial year, they can issue what is called a section 114 notice., external<\/span><\/p>\n

    This means they cannot commit to most new spending, and residents could see reduced services, such as fewer bin collections or cuts to libraries.<\/p>\n

    Before 2018, only two councils had issued a section 114. Twelve have been issued since.<\/p>\n

    Birmingham City Council went bust in 2023, with a \u00a3760m black hole. It followed Woking Council, Thurrock and Croydon (for the third time). <\/p>\n

    A number of local authorities in England have not issued section 114 notices but are receiving so-called “exceptional financial support”, external<\/span> to help manage their budgets.<\/p>\n

    Middlesbrough Council is one of 19 authorities allowed to borrow money to fund day-to-day spending in 2024-25.<\/p>\n<\/div>\n

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    Related topics<\/h2>\n<\/p>\n<\/div>\n

    <\/main><\/div>\n","protected":false},"excerpt":{"rendered":"

    Image source, Getty Images By Sam Francis Political reporter, BBC News Council tax bills rose rise for millions of households in England, Scotland and Wales on 1 April. Council finances are “extremely challenging” and there could be further cuts to services, the Local Government Association has warned. What is council tax and who pays it? 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