Council Tax Expected to Rise 5% Annually Across England

Council tax and local rates in England and Australia are poised for significant increases amid rising costs and funding shortfalls. The Kentish Council in Australia plans a 7.5% general rate increase to address rising costs, including infrastructure depreciation and waste management services, resulting in average annual increases of nearly 6% for total rates and charges. In England, the Government’s Spending Review assumes councils will raise council tax by the maximum 5% allowed annually, leading to the fastest rise in council tax bills in over two decades, with average Band D properties potentially paying an extra £395 by 2028-29. Local authority leaders warn that many councils face severe funding gaps, with some having already sought permission to increase rates by up to 25%, while the County Council Network highlights a £2.2 billion funding shortfall next year. Chancellor Rachel Reeves confirmed the 5% council tax cap remains in place, but councils are not obligated to raise rates by the full amount, despite pressures to fund services such as policing and social care. Critics note that while NHS and defense budgets see significant increases, other public services face cuts, intensifying reliance on local taxation to maintain essential community services.