Title

FINANCE

Council tax cap to remain at 5%

Council tax increases will be kept at the 5% cap next year, Labour have confirmed.

© Loch Earn / Shutterstock.com

© Loch Earn / Shutterstock.com

Council tax increases will be kept at the 5% cap next year, Labour have confirmed.

Kemi Badenoch yesterday in the Commons questioned the Prime Minister about the threshold limiting the amount councils can increase council tax by without a referendum.

Keir Starmer responded that MPs ‘will know what the arrangements are', prompting the Conservative leader to respond: ‘I think the house would have heard that the Prime Minister could neither confirm nor deny whether the cap on council tax was being raised.'

The PM's press secretary later confirmed: ‘The threshold remains the same.'

Government statistics show the average band D council tax set by local authorities in England for 2024-25 was £2,171, which represented an increase of £106 or 5.1% on the previous year.

FINANCE

Reeves urged to raise higher council tax bands

By Dan Peters | 14 November 2025

Chancellor Rachel Reeves should increase rates on higher council tax bands to raise just under £4bn in her Budget later this month, an influential think-tank...

FINANCE

Suffolk districts call for minister to intervene over county's reorganisation tactics

By Paul Marinko | 13 November 2025

Suffolk’s districts have urged ministers to take action against the county council for its tactics aimed at landing a single countywide unitary through reorg...

FINANCE

Fears Pride in Place sidelines rural areas

By Martin Ford | 06 November 2025

Concerns have been raised that rural areas will miss out on the Pride in Place programme.

FINANCE

Putting the sector in the Budget driving seat: The Budget councils deserve

By Simon Christian | 06 November 2025

Simon Christian says that while a Budget that reflects councils’ responsibilities and the urgency of the challenges ahead is vitally needed, this must be mat...

Popular articles by William Eichler