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| What is council tax and how much did it go up in April? | |
| (1 day later) | |
| Council tax bills rose rise for millions of households in England, Scotland and Wales on 1 April. | |
| Council finances are "extremely challenging" and there could be further cuts to services, the Local Government Association has warned. | Council finances are "extremely challenging" and there could be further cuts to services, the Local Government Association has warned. |
| LIVE: Council tax and energy bills rise, but minister says minimum wage and pension increases will help | |
| Three ways to cushion the blow of bill rises | |
| 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. | 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. | 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, and properties occupied only by students are exempt. | Someone living alone, for example, is entitled to a 25% reduction, external, and properties occupied only by students are exempt. |
| Some discounts are available if you - or someone you live with - has a disability, external. | Some discounts are available if you - or someone you live with - has a disability, external. |
| Northern Ireland uses a domestic rates system, external instead of council tax. | Northern Ireland uses a domestic rates system, external instead of council tax. |
| How much are council tax bills going up in England? | How much are council tax bills going up in England? |
| Most councils in England were expected to put bills up by the maximum amount allowed, the County Councils Network said. | |
| That's 4.99% (without triggering a referendum) for those with responsibility for social care. | That's 4.99% (without triggering a referendum) for those with responsibility for social care. |
| All but three of London's local authorities are putting up bills by 4.99%. | All but three of London's local authorities are putting up bills by 4.99%. |
| Smaller councils without social care duties can increase bills by up to 2.99%. | Smaller councils without social care duties can increase bills by up to 2.99%. |
| For 2025-26, the government is letting six areas introduce bigger rises. | For 2025-26, the government is letting six areas introduce bigger rises. |
| Bradford Council increased bills by 10% and they rose by 9% in Newham, and Windsor and Maidenhead. | |
| Birmingham, Somerset and Trafford put bills up by 7.5%. | |
| In April 2024, the average increase for a band D property in England was £106, external, which took the average bill to £2,171. | In April 2024, the average increase for a band D property in England was £106, external, which took the average bill to £2,171. |
| The towns where you pay £300 more in council tax | The towns where you pay £300 more in council tax |
| What is happening to council tax in Scotland and Wales? | What is happening to council tax in Scotland and Wales? |
| Council tax rates in Scotland had been frozen or had limited increases since 2007, but went up in April. Bills rose by at least 10% in 13 areas. | |
| The country's 32 councils had warned they faced a potential shortfall of £392m in 2025-26, which could rise to £780m the following year. | |
| The Scottish government says it is giving councils an extra £1bn in 2025-26 to help limit increases. | The Scottish government says it is giving councils an extra £1bn in 2025-26 to help limit increases. |
| Council tax rates in Wales increased by between 5% and 9.2% in April. | |
| Wales' 22 local authorities were given £253m in December's draft budget, but council leaders said more was needed. | Wales' 22 local authorities were given £253m in December's draft budget, but council leaders said more was needed. |
| How is council tax calculated? | How is council tax calculated? |
| How much you pay depends on your property's council tax band. Broadly speaking, the more expensive the property, the higher the band. | How much you pay depends on your property's council tax band. Broadly speaking, 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. Wales uses 2003 prices and Northern Ireland 2005 prices. | In England and Scotland, bands are based on the price the property would have sold for in 1991. Wales uses 2003 prices and Northern Ireland 2005 prices. |
| You can check your home's band in: | You can check your home's band in: |
| England and Wales, external | England and Wales, external |
| Scotland, external | Scotland, external |
| Northern Ireland, external | Northern Ireland, external |
| Council tax bills also include additional charges. | Council tax bills also include additional charges. |
| 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 work. | 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 work. |
| Some cities with mayors, such as London and Manchester, can also add a separate charges for other services. | Some cities with mayors, such as London and Manchester, can also add a separate charges for other services. |
| What does council tax pay for? | What does council tax pay for? |
| Council tax funds local services, including: | Council tax funds local services, including: |
| rubbish collection | rubbish collection |
| street lighting | street lighting |
| libraries | libraries |
| police and fire services | police and fire services |
| youth clubs | youth clubs |
| parks and recreation facilities | parks and recreation facilities |
| care services | care services |
| In 2023-24, 61% of council spending went on children's services and adult social care, external, up from 52% in 2013-14. | In 2023-24, 61% of council spending went on children's services and adult social care, external, up from 52% in 2013-14. |
| Council tax helps to fund local services such as playgrounds | Council tax helps to fund local services such as playgrounds |
| Where else do councils get their money? | Where else do councils get their money? |
| About half of local authority funding comes from council tax, according to the Institute for Government (IFG). | About half of local authority funding comes from council tax, according to the Institute for Government (IFG). |
| Councils in England can also raise money by charging for services including parking, swimming pools and planning applications. | Councils in England can also raise money by charging for services including parking, swimming pools and planning applications. |
| Most of the rest comes from a combination of business rates and central government grants. | Most of the rest comes from a combination of business rates and central government grants. |
| Labour has promised £2bn of central government funding for English councils in the year from April 2025, an extra £700m on top of the £1.3bn announced in October's Budget. | Labour has promised £2bn of central government funding for English councils in the year from April 2025, an extra £700m on top of the £1.3bn announced in October's Budget. |
| But £515m of that has already been earmarked to pay for higher National Insurance (NI) contributions from April. | But £515m of that has already been earmarked to pay for higher National Insurance (NI) contributions from April. |
| Councils have also had to deal with inflation, higher energy costs and increases to the National Living Wage. | Councils have also had to deal with inflation, higher energy costs and increases to the National Living Wage. |
| The government is consulting on directing more money to deprived councils in England from 2026. | The government is consulting on directing more money to deprived councils in England from 2026. |
| When and where are the May local elections and who can vote? | When and where are the May local elections and who can vote? |
| What happens when a council goes 'bankrupt'? | What happens when a council goes 'bankrupt'? |
| Councils cannot technically go bankrupt, but if they cannot balance their budget for the financial year, they can issue what is called a section 114 notice., external | Councils cannot technically go bankrupt, but if they cannot balance their budget for the financial year, they can issue what is called a section 114 notice., external |
| This means they cannot commit to most new spending, and residents could see reduced services, such as fewer bin collections or cuts to libraries. | This means they cannot commit to most new spending, and residents could see reduced services, such as fewer bin collections or cuts to libraries. |
| Before 2018, only two councils had issued a section 114. Twelve have been issued since. | Before 2018, only two councils had issued a section 114. Twelve have been issued since. |
| Birmingham City Council went bust in 2023, with a £760m black hole. It followed Woking Council, Thurrock and Croydon (for the third time). | Birmingham City Council went bust in 2023, with a £760m black hole. It followed Woking Council, Thurrock and Croydon (for the third time). |
| A number of local authorities in England have not issued section 114 notices but are receiving so-called "exceptional financial support", external to help manage their budgets. | A number of local authorities in England have not issued section 114 notices but are receiving so-called "exceptional financial support", external to help manage their budgets. |
| Middlesbrough Council is one of 19 authorities allowed to borrow money to fund day-to-day spending in 2024-25. | Middlesbrough Council is one of 19 authorities allowed to borrow money to fund day-to-day spending in 2024-25. |
| Why do councils go bust and what happens when they do? | Why do councils go bust and what happens when they do? |