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Story perspectives

Average Council Tax to Rise 4.9% Amid Funding Crisis

3/25/2026

44 4 Full Breakdown

Summary

Story summary

The average English council tax will rise 4.9% from 1 April 2026, adding £111 to the Band D bill to £2,392.
The increase outpaces inflation as councils face pressures to maintain services.
Some councils, such as Shropshire and North Somerset, will see hikes near 9%.
The Local Government Association warns that council tax cannot address long-term financial challenges, and disparities in funding will create winners and losers.

History

Historical Context

The Local Government Finance Act of 1992 reformed council tax in England, replacing the unpopular Community Charge. This act allowed councils to set their own tax rates, resulting in significant variations, with Band D bills averaging £2,392. As councils like Shropshire and North Somerset propose increases of nearly 9%, disparities in funding continue to threaten equity among local governments.

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Story summary

The average English council tax will rise 4.9% from 1 April 2026, adding £111 to the Band D bill to £2,392.
The increase outpaces inflation as councils face pressures to maintain services.
Some councils, such as Shropshire and North Somerset, will see hikes near 9%.
The Local Government Association warns that council tax cannot address long-term financial challenges, and disparities in funding will create winners and losers.

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