Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, whether core spending power figures published in the Local Government Finance assumes (a) that each principal local authority sets the maximum level of council tax that does not trigger a council tax referendum or (b) a different level of council tax.

Over the multi-year Settlement, Core Spending Power is calculated by assuming that authorities increase their Band D council tax in line with the maximum allowable level set out by the council tax referendum principles; and each authority’s council tax base increases in line with the average annual growth in their council tax base between 2021-22 and 2025-26. This type of approach has been standard practice under successive governments. Explanations on how council tax and associated referendum principles are calculated as part of core spending power is set out here - Explanatory note on Core Spending Power: final local government finance settlement 2026-27 to 2028-29 - GOV.UK.

Local authorities are responsible for setting their own council tax levels. The way council tax in Core Spending Power is estimated is unchanged from previous Local Government Finance Settlements. In line with usual practice and in recognition of the views raised in response to this consultation, the government will continue to keep its methodology for calculating the Core Spending Power of local government under review in future years.