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

To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the Answer of 9 February 2026 to Question 109623 on Local Government Finance: City of Westminster and Wandsworth, what methodology his Department used to estimate the average increase in council tax; and whether his Department held discussions with councils on this methodology.

The government believes it is right to continue to calculate Core Spending Power in line with the approach used at previous Settlements. This includes an assumption that authorities increase their Band D council tax by the maximum allowed within any council tax referendum principles set for them.

To increase fairness for taxpayers, provide better value for money and enable the rebalancing of disparities in council tax levels, the government intends not to set referendum principles in 2027-28 and 2028-29 for six upper-tier authorities with the lowest council tax levels receiving 95% income protection. Removing referendum principles in these areas will enable the government to allocate over £250 million more funding for public services in places with higher need instead of subsidising very low bills for 500,000 households in these councils.

To calculate their Core Spending Power, we assume City of Westminster, Wandsworth, Kensington and Chelsea, Hammersmith and Fulham, City of London, and Windsor and Maidenhead increase their council tax by 5% in 2026-27. We also assume they will increase their council tax by 5% plus £150 in 2027-28 and 2028-29, which is closer to the average council tax increase across the country.

The actual level of council tax remains a local decision for individual councils, taking into consideration a range of local factors including the impact on taxpayers.