Council Tax

(asked on 13th January 2025) - View Source

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

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Provisional local government finance settlement: England, 2025 to 2026, published on 18 December 2024, what estimate she has made of the expected increase in average Band D council tax in England in (a) cash and (b) percentage terms between 2024-25 and 2025-26 when calculating the core spending power increase.


Answered by
Jim McMahon Portrait
Jim McMahon
This question was answered on 21st January 2025

Growth in council tax revenue is calculated using two factors, growth in the size of the tax base, and levels of taxation. Council tax levels are assumed to increase in line with the principles set out at the provisional Local Government Finance Settlement. More detail on the methodology including assumptions about the growth in the size of the tax base is available here.

The methodology used to calculate the expected increase in average Band D council tax in England is available in the Explanatory Note on Core Spending Power for the Provisional Local Government Finance Settlement 2025-26.

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