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

And those against?

By Cllr Steve Pitt | 23 July 2025

Cllr Steve Pitt makes a firm case for local authorities such as Portsmouth City Council to be left out of local government reorganisation.

FINANCE

Fresh criticism of Home Office on asylum

By Neil Merrick | 22 July 2025

Relations between councils and the Home Office soured further this week after the department was accused of failing to communicate properly over housing asyl...

FINANCE

McMahon names Croydon commissioners

By Martin Ford | 18 July 2025

Commissioners have been appointed at Croydon LBC despite protestations from the council’s mayor.

FINANCE

On the right path to fiscal devo

By Alun Hughes | 16 July 2025

Government accepts the fiscal devolution principle, says Alun Hughes, and he argues that a County Councils' Network report shows why ministers now need to em...

Popular articles by William Eichler