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 16 June 2026 to Question 8564, on Council tax, what is the maximum annual percentage increase in council tax for equalisation allowed under council tax harmonisation.

Annual increases in council tax levels in restructuring authorities are subject to referendum principles set by central government. The multi-year settlement set out that for the vast majority of councils, the government has maintained a core referendum threshold of 3% and a 2% adult social care precept.

When harmonising the council tax levels, the new unitary council may apply the referendum principle in one of two ways:

1) it can apply the principle to each individual predecessor area’s B and D council tax level; or

2) it can apply the principle to the entire new council area’s average Band D level

This latter approach means that the overall average increase across the new council’s area must not breach the referendum principle.

More information on council tax harmonisation can be found in the FAQ here.