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| What is council tax, how much has it gone up, and how is it calculated? | What is council tax, how much has it gone up, and how is it calculated? |
| (about 1 month later) | |
| Council tax bills have gone up for millions of households in England and Wales. | Council tax bills have gone up for millions of households in England and Wales. |
| Large increases set by local authorities came into force on 1 April. Many have also slashed services in an effort to balance their books. | Large increases set by local authorities came into force on 1 April. Many have also slashed services in an effort to balance their books. |
| How much is my council tax bill going up by? | How much is my council tax bill going up by? |
| Councils with social care duties can raise council tax every year by up to 4.99%, without triggering a referendum. Others can increase it by up to 2.99%. | Councils with social care duties can raise council tax every year by up to 4.99%, without triggering a referendum. Others can increase it by up to 2.99%. |
| The County Councils Network previously predicted that 75% of councils would introduce the maximum increase in April 2024. | The County Councils Network previously predicted that 75% of councils would introduce the maximum increase in April 2024. |
| The average increase for a band D property in England for 2024-2025 will be £106, taking bills up to £2,171, external. The average rise in April 2023 was £99, external. | |
| Councils can increase bills by more than 5% without a referendum if they have government permission. | Councils can increase bills by more than 5% without a referendum if they have government permission. |
| Birmingham City Council, for example, has approved an increase of 21% over the next two years, as it tries to make savings of £300m. | Birmingham City Council, for example, has approved an increase of 21% over the next two years, as it tries to make savings of £300m. |
| Woking Borough Council agreed an increase of 10%. Thurrock put bills up by 8%, while Sough approved an 8.5% rise. All have effectively declared themselves bankrupt. | Woking Borough Council agreed an increase of 10%. Thurrock put bills up by 8%, while Sough approved an 8.5% rise. All have effectively declared themselves bankrupt. |
| In Wales, a 12% council tax rise was approved for Pembrokeshire. | In Wales, a 12% council tax rise was approved for Pembrokeshire. |
| How much is council tax going up in Wales? | How much is council tax going up in Wales? |
| How much is council tax going up in Wales? | |
| Council charges also rose in Northern Ireland. However, in Scotland they are frozen until 2025. | Council charges also rose in Northern Ireland. However, in Scotland they are frozen until 2025. |
| What is council tax and who pays it? | What is council tax and who pays it? |
| Council tax is a compulsory charge on properties in England, Scotland and Wales. It is set by local authorities to raise money for providing services. | Council tax is a compulsory charge on properties in England, Scotland and Wales. It is set by local authorities to raise money for providing services. |
| Typically, anyone who is over 18 and owns or rents a home has to pay council tax. | Typically, anyone who is over 18 and owns or rents a home has to pay council tax. |
| However, there are some exemptions and discounts. | However, there are some exemptions and discounts. |
| Someone living alone, for example, is entitled to a 25% reduction, external. | |
| Properties occupied only by students are exempt. | Properties occupied only by students are exempt. |
| And there are some discounts if you, or someone you live with, has a disability, external. | |
| Most people pay in 10 monthly instalments and then don't pay anything in February and March. | Most people pay in 10 monthly instalments and then don't pay anything in February and March. |
| Northern Ireland uses a domestic rating system, external instead of council tax. | |
| How is council tax calculated? | How is council tax calculated? |
| How much you pay depends on the council tax band your property is in. The more expensive the property, the higher the band. | How much you pay depends on the council tax band your property is in. The more expensive the property, the higher the band. |
| In England and Scotland, bands are based on the price the property would have sold for in 1991, and in Wales it is 2003. Northern Ireland's system uses 2005 prices. | In England and Scotland, bands are based on the price the property would have sold for in 1991, and in Wales it is 2003. Northern Ireland's system uses 2005 prices. |
| You can check which band your home is in: | You can check which band your home is in: |
| England and Wales, external | |
| England and Wales, external | |
| Scotland, external | |
| Scotland, external | |
| Northern Ireland, external | |
| Northern Ireland, external | |
| Where does my council tax money go? | Where does my council tax money go? |
| Council tax is a major source of income for most councils. It helps fund numerous services, including: | Council tax is a major source of income for most councils. It helps fund numerous services, including: |
| rubbish collection | rubbish collection |
| rubbish collection | |
| street lighting | street lighting |
| street lighting | |
| libraries | libraries |
| libraries | |
| police and fire services | police and fire services |
| police and fire services | |
| youth clubs | youth clubs |
| youth clubs | |
| parks and recreation facilities | parks and recreation facilities |
| parks and recreation facilities | |
| Council tax helps to fund local services such as playgrounds | Council tax helps to fund local services such as playgrounds |
| Council tax helps to fund local services such as playgrounds | |
| Council tax bills also include additional charges - called levies - which pay for other services. | Council tax bills also include additional charges - called levies - which pay for other services. |
| One goes towards the cost of care homes and other adult social care services. Another is set by local police and fire authorities to help fund their services. | One goes towards the cost of care homes and other adult social care services. Another is set by local police and fire authorities to help fund their services. |
| Some cities with mayors, such as London and Manchester, can also add a separate levy that covers funding various services. | Some cities with mayors, such as London and Manchester, can also add a separate levy that covers funding various services. |
| Where else do councils get their money? | Where else do councils get their money? |
| Councils in England can raise some income by charging for services like parking, swimming pools, planning applications and from commercial investments. | Councils in England can raise some income by charging for services like parking, swimming pools, planning applications and from commercial investments. |
| But about half of local authority funding comes from council tax, external, the Institute for Government says. | |
| Most of the rest comes from a mix of business rates and central government grants. | Most of the rest comes from a mix of business rates and central government grants. |
| By the 2024-25 financial year, councils will have seen a 27% fall in spending power for local services since 2010, external, according to the Local Government Association (LGA). | |
| It says cuts in central government grants, rising inflation, higher energy costs and increases to the National Living Wage are all factors. | It says cuts in central government grants, rising inflation, higher energy costs and increases to the National Living Wage are all factors. |
| Nottingham City Council said reduced government funding was one of the reasons it had to approve hundreds of job losses and cut social care and youth services. | Nottingham City Council said reduced government funding was one of the reasons it had to approve hundreds of job losses and cut social care and youth services. |
| Its leader David Mellen told the BBC £100m had been taken from its budget "each and every year in the last 10 years", external. | |
| What happens when a council goes 'bankrupt'? | What happens when a council goes 'bankrupt'? |
| Councils don't technically go bankrupt, but if they can't balance the budget for the financial year, they can issue what's called a section 114 notice, external. | |
| This means they can't commit to most new spending, and residents could see cuts to services, such as reducing the number of bin collections or dimming streetlights. | This means they can't commit to most new spending, and residents could see cuts to services, such as reducing the number of bin collections or dimming streetlights. |
| Before 2018, only two councils had issued a section 114. Since then, there have been more than 10 such notices | Before 2018, only two councils had issued a section 114. Since then, there have been more than 10 such notices |
| One in five English councils say that it is in danger of going bankrupt, according to the LGA. | One in five English councils say that it is in danger of going bankrupt, according to the LGA. |
| A number of authorities in England have not issued section 114 notices but are receiving exceptional financial support, external to manage financial pressures. | |
| Middlesbrough Council, for example, is one of 19 authorities that has permission to borrow money to fund day-to-day spending in 2024-25. | Middlesbrough Council, for example, is one of 19 authorities that has permission to borrow money to fund day-to-day spending in 2024-25. |
| Birmingham City Council went bust in 2023, with a £760m black hole. It followed Woking Council, Thurrock and Croydon (for a third time). | Birmingham City Council went bust in 2023, with a £760m black hole. It followed Woking Council, Thurrock and Croydon (for a third time). |
| Why do councils go bust and what happens when they do? | Why do councils go bust and what happens when they do? |
| Why do councils go bust and what happens when they do? | |
| Vital services or financial ruin? England's town hall dilemma | Vital services or financial ruin? England's town hall dilemma |
| Vital services or financial ruin? England's town hall dilemma | |
| What happens if you can't pay your council tax? | What happens if you can't pay your council tax? |
| Don't just stop paying - councils may take legal action to reclaim the money. | Don't just stop paying - councils may take legal action to reclaim the money. |
| Instead, contact the council and explain the situation, Citizens Advice suggests, external. | |
| You might be able to pay less council tax or not pay it at all depending on your circumstances. | You might be able to pay less council tax or not pay it at all depending on your circumstances. |
| Which debts and bills should I pay first? | |
| Which debts and bills should I pay first? | Which debts and bills should I pay first? |
| Related Topics | Related Topics |
| Department for Levelling Up, Housing and Communities | Department for Levelling Up, Housing and Communities |
| Council tax | Council tax |
| Cost of Living | Cost of Living |
| Local government | Local government |