With the next budget announcement waiting, one question is making many people nervous: Will council tax rise again? As the cost of living continues to compress households, even a small rise can feel like a big burden. Here's a simple breakdown of what might happen.
Why Council Tax might change
Local councils all over the UK face huge financial pressures. The rising costs of social care, inflation, and struggling public services have pushed many councils close to bankruptcy.
To cope with this, the government may allow councils to
1. Increase council tax by a higher percentage
Councils are typically constrained by how much they can increase tax without a local referendum. The budget could change that cap, allowing them to increase rates more freely.
2. Add charges for social care
Some councils add an adult social care precept this may increase, particularly because demand for care is rising.
3. Redraw the council tax bands
Long overdue, a revaluation of properties could shift homes into new bands, altering how much people pay depending on the current market value of their property.
Different proposals have very different consequences:
If tax rates increase
Everyone pays more, but lower-income households and single adults may be feeling it most.
Who Would Be Hardest Hit?
1. Low- and middle-income households
The cost-of-living crisis hasn't gone away. Another rise, even small, hits these households hardest because council tax is not based on income; it's based on property value.
2. Tenants in high-demand locations
In some cases, renters do not directly pay the council tax, but landlords mostly push higher costs into rent. With increased council tax bands, expect higher rents in the cities.
3. Single-person households
Even with the 25 percent discount, the rising base rates still hit them quite hard.
4. People living in large family homes
If a revaluation of property occurs, larger homes in areas where prices have increased sharply might show steep increases.
Could Anyone Benefit?
Possibly. If bands are reshuffled, households in areas where property values have fallen or stagnated could pay less.
Also, relief may be given to people entitled to council tax support or discounts, particularly if the government decides to widen such support schemes.
What Should You Do Now?
While we wait for the final budget announcement:
Check your current council tax band - many homes are in the wrong band and can be challenged.
Check if you qualify for discounts: students, single adults, low-income households, and disabled residents may get reductions.
Final Thoughts
Council tax changes can seem confusing, but the bottom line is pretty straightforward: The budget could bring higher bills for many households, especially in high-value or fast-growing areas. With councils struggling financially, some level of change seems likely, although exactly how that will play out will depend on what the chancellor announces.
