Which? Why your council tax bill is rising so high + tips on how to reduce it
Apr 3, 2025
This discussion features Matthew Jenkin, a Which? Money writer specializing in personal finance, and Marcus Johns, a Senior Research Fellow focused on public policy. They tackle the striking 5% increase in council tax bills and explore the historical funding shifts that led councils to rely more on local taxpayers. Frustration over rising bills despite declining services is palpable. Listeners learn about exemptions, discounts for specific groups, and practical tips to navigate council tax challenges and potentially reduce their payments.
AI Snips
Chapters
Transcript
Episode notes
Rising Council Tax Across UK
- Council tax bills in England have risen by an average of 5% this year, with some areas like Bradford seeing increases up to 9.99%.
- Scotland and Wales have experienced even higher rises, with no caps on increases, e.g., Falkirk with a 15% rise.
Financial Pressures Push Council Tax Up
- Councils often increase taxes up to the legal 4.99% cap due to financial difficulties and rising demand in social services.
- Some councils apply to raise rates above the cap to avoid severe spending cuts and financial stress.
Why The Council Tax Cap Exists
- The council tax cap was introduced in 2012-13, limiting increases to 4.99%, split into 2.99% basic tax and 2% for adult social care.
- Councils exceeding this cap must hold a local referendum or seek government approval due to financial strain largely from rising social care costs.