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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? |
| (8 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%. | 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. |
| April 2023 saw 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% reduction. | |
| 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 other 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, 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. | |
| 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 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. |
| Vital services or financial ruin? England's town hall dilemma | 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. | 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. | 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. | 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 may 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 |