Households across England are facing a significant increase in council tax bills, with the average Band D bill set to rise by 5% in April – an increase of £109, from £2,171 to £2,280. The move has sparked anger and accusations that Labour is piling financial pressure on families and local councils, with critics branding it a “day of shame” for Prime Minister Sir Keir Starmer’s government.
The increase means council tax bills are now a fifth higher than in 2021-22, when the average bill was £1,898. This comes despite Starmer’s 2023 pledge to freeze council tax if Labour came to power. Instead, households are facing yet another cost-of-living blow, with bills varying significantly depending on location. For example, Band D bills range from £998 in Wandsworth, South London, to £2,671 in Rutland in the East Midlands.
The Conservative Party has been quick to criticize the rise, accusing Labour of failing to deliver on its promises. A Conservative spokesman said, “This is Starmer’s day of shame. It is clear that taxes are only going one way on his watch because of decisions he’s made.”
Caroline Abrahams of Age UK warned that the “cost of living crisis is far from over,” adding that the council tax hike will exacerbate financial struggles for many older people. “We’re still hearing from thousands of older people struggling to afford the basics as everything keeps going up,” she said.
Kevin Hollinrake, the Shadow Local Government Secretary, blamed Chancellor Rachel Reeves’s decision to increase employers’ National Insurance contributions, which he said had driven up costs for councils. “This Labour government is driving up costs for councils across the country with their jobs tax… We are the only ones standing up to a dreadful Labour government determined to crush businesses, raise your taxes, and trash the economy,” he said.
Tory leader Kemi Badenoch, speaking at the launch of her party’s local election campaign, pledged that Conservative councils would deliver better value for money. “[At] local level, Conservative councils consistently deliver better services at a lower rate… If you vote for something else, you will get something much worse,” she said.
Think tanks and campaigners have also called for reforms to address the underlying issues in local government funding. Elliot Keck of the Taxpayers’ Alliance criticized the “stagnant productivity” in councils, saying, “Town halls across England need to spend the next financial year imposing rigorous key performance indicators and performance reviews for all staff to ensure there is no one failing to pull their weight.”
Maxwell Marlow of the Adam Smith Institute argued that the council tax hike was a symptom of broader systemic problems. “For decades, Whitehall has placed more and more responsibility on local authorities that should have been given to the significantly more efficient private sector. Local government finances need an urgent and systematic review,” he said.
The level of council tax varies greatly depending on location and the type of council. In London, the average Band D bill is £1,982 (+4.7%), compared with £2,289 in metropolitan council areas (+5.6%) and £2,344 in shire areas (+4.8%). Barry Lewis of the County Councils Network pointed out that urban councils often pay significantly lower tax, while county areas have lost more central government funding over the past two decades, leaving them more reliant on council tax to fund services like adult social care, pothole repairs, and libraries.
Kate Ogden of the Institute for Fiscal Studies warned that the 5% increase is “around twice the level of inflation” and that further above-inflation rises are likely in the future. “Councils will need to find ways to tackle rising demands and costs for their services if they are to avoid making cuts to local public services over the next few years,” she said.
A Government spokesperson defended the decision, stating, “We are under no illusion about the scale of financial issues facing councils we inherited, and our work is under way to fix the foundations and bring long-term stability to the sector.” They also emphasized that councils are responsible for setting their own council tax levels and should “put taxpayers first.”
As households brace for higher bills, the debate over council tax and local government funding is likely to remain a contentious issue, with both major parties under pressure to deliver solutions that balance fiscal responsibility with the need to support struggling families and maintain essential services.
