Thu, 12 Jun 2025

Thu, 12 Jun 2025 Council tax expected to rise by 5% a year

Council tax is expected to rise by 5% a year to pay for local services, documents in the Spending Review suggest.

* Council tax is expected to rise by 5% per year to pay for local services, according to documents in the Spending Review.
* Police funding will also increase, with a £14 annual rise in the police precept for Band D council tax bills on top of the general 5% rise.
* The Spending Review assumes councils will raise council tax to the maximum level, but local authorities can choose lower increases if they wish.
* Councils' total spending power is expected to rise by 2.6%, including grant funding and business rates.
* Chancellor Rachel Reeves said nothing has changed in terms of the 5% council tax cap, which means councils do not have to raise taxes by 5%.
* Local services such as social care, libraries, bin collection, and street cleaning will be funded through council tax.
* Police spending power is expected to rise by 2.3% per year in real terms, with a projected increase in the police precept.
* Council tax bills are predicted to increase by the maximum amount every year until 2029.
* The Spending Review has been criticized by police leaders and local authorities for not providing enough funding, with some arguing that it will lead to further cuts.
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