Today, the government has published the council tax levels set by local authorities in England for 2026-27. This showed that the increase in the national average council tax will be less than the last three years.
The average Band D council tax increase set by local authorities in England for 2026-27 will be 4.9%, the lowest level in three years. The increase was 5.0% last year and 5.1% the year before.
Councils are responsible for their own council tax levels and we are clear they should keep taxes on working people as low as possible. For the vast majority of councils, the government will maintain a core referendum threshold of 3% and a 2% adult social care precept over the multi-year settlement.
Where a referendum principle is in place, councils setting an increase above this threshold must have it approved by voters.
The government recognises that some councils remain in a challenging financial position as they continue to deal with the legacy of the previous system.
A number of councils made requests for additional council tax flexibility above core referendum principles. We have carefully considered them and agreed to seven requests
This is why we have introduced the first multi-year funding settlement in over a decade, making £78 billion available to give councils the certainty they have asked for. And we are investing more money into the most deprived communities.
By the end of this settlement, the government will have provided a 15.5% increase in Core Spending Power for local authorities in England, worth over £11.4 billion, compared to 2025-26.
And at the end of the decade, the top 10% of the most deprived areas will have 45% more spending power than the least deprived – ensuring local people get the high-quality public services they deserve.
An MHCLG spokesperson said: “Councils are responsible for their own council tax levels and we are clear they should keep taxes on working people as low as possible. “We have also made £78 billion available for their finances next year, with the majority of money unringfenced so local leaders can decide for themselves how best to spend on their local priorities.”