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| What is council tax, how much is it going up by and how is it calculated? | What is council tax, how much is it going up by and how is it calculated? |
| (14 days later) | |
| Millions of households are expected to see their council tax bills rise in April. | Millions of households are expected to see their council tax bills rise in April. |
| Some councils are set to impose large increases while simultaneously slashing services, in an effort to balance their books. | Some councils are set to impose large increases while simultaneously slashing 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 by up to 4.99%, without triggering a referendum. Others can increase it by up to 2.99%. | |
| In April, 75% of councils are expected to introduce the maximum increase, according to the County Councils Network, a local government organisation. | In April, 75% of councils are expected to introduce the maximum increase, according to the County Councils Network, a local government organisation. |
| Last year, this meant an average £99 increase for band D properties in England, taking bills to £2,065 a year. | Last year, this meant an average £99 increase for band D properties in England, taking bills to £2,065 a year. |
| 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, is set to hike council tax by 21% over the next two years, as it tries to make savings of £300m. | Birmingham City Council, for example, is set to hike council tax by 21% over the next two years, as it tries to make savings of £300m. |
| Woking Borough Council can raise council tax by up to 10%, while Thurrock and Slough can put bills up 8%. All have effectively declared themselves bankrupt. | Woking Borough Council can raise council tax by up to 10%, while Thurrock and Slough can put bills up 8%. All have effectively declared themselves bankrupt. |
| In Wales, a council tax rise of 16% has been recommended for Pembrokeshire. | In Wales, a council tax rise of 16% has been recommended for Pembrokeshire. |
| Council charges are also expected to rise in Northern Ireland. However, in Scotland they are frozen until 2025. | Council charges are also expected to rise 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% discount. | Someone living alone, for example, is entitled to a 25% discount. |
| 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. | And there are some discounts if you, or someone you live with, has a disability. |
| Most people pay in 10 monthly instalments then don't pay anything in February and March. | Most people pay in 10 monthly instalments then don't pay anything in February and March. |
| Northern Ireland uses a domestic rating system instead of council tax. | Northern Ireland uses a domestic rating system instead of council tax. |
| How is council tax calculated? | How is council tax calculated? |
| How much you pay depends on what council tax band your property is in. The more expensive the property, the higher the band. | How much you pay depends on what 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 you home is in: | You can check which band you home is in: |
| England and Wales | England and Wales |
| Scotland | Scotland |
| Northern Ireland | Northern Ireland |
| 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 |
| 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 |
| 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 charges, the Institute for Government says. | But about half of local authority funding comes from council tax charges, 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, the Local Government Association (LGA) says. | |
| 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, which is effectively bankrupt, 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, which is effectively bankrupt, 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". | Its leader David Mellen told the BBC £100m had been taken from its budget "each and every year in the last 10 years". |
| Councils to be told to cut diversity plans in Budget | Councils to be told to cut diversity plans in Budget |
| 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. | 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. |
| This means they can't commit to most new spending and residents will possibly 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. |
| Vital services or financial ruin? England's town hall dilemma | |
| 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 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. | |
| Council tax helps to fund local services, including playgrounds | Council tax helps to fund local services, including playgrounds |
| 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? |
| 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 many take legal action to reclaim the money. | Don't just stop paying - councils many take legal action to reclaim the money. |
| Instead, contact the council and explain the situation, Citizens Advice suggests. | Instead, contact the council and explain the situation, Citizens Advice suggests. |
| 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. |
| 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 |