Council Tax

(asked on 8th July 2025) - View Source

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

To ask the Secretary of State for Housing, Communities and Local Government, with reference to paragraph 9.4.6 of her Department's publication entitled The Fair Funding Review 2.0, published on 20 June 2025, what the assumed increase is in the notional Band D council tax in each year of the multi-year settlement.


Answered by
Jim McMahon Portrait
Jim McMahon
Minister of State (Housing, Communities and Local Government)
This question was answered on 16th July 2025

It is for individual councils to set their own level of council tax. In 2025-26, data published by MHCLG shows that councils expect to generate £653.6m from the use of the ASC Precept in 2025-26, which adds £34 to average band D bills. The data is available here: https://assets.publishing.service.gov.uk/media/680a37fc7a11df940be1aaa2/Table_10_2025-26.ods.

For 2026-27 to 2028-29, the Spending Review assumed a 3% core referendum principle and a 2% adult social care precept over the period, in line with OBR forecasts. Final referendum principles will be confirmed at the local government finance settlement each year, subject to approval by the House of Commons, in the usual way. The government is inviting views and supporting evidence on projecting a notional Council Tax level, to ensure places less able to raise tax locally are not left behind. The consultation is open until 15th August.

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