How will Council Tax increase in 2024?

by Erin Doye | 4 Apr, 2024 | Bills, Council Tax

Council Tax – the bill paid to local authorities for essential services – is adjusted at the beginning of the Tax Year on April 1st.

The new rates are based on inflation, as well as rising operational costs and budget shortcomings that have seen local Councils effectively declaring bankruptcy.

How much did Council Tax increase in April?

At the start of 2024, local authorities were told the government expected the maximum possible increase to be applied.

That increase was 4.99%, around 1% higher than the rate of inflation over the past year. For a typical Band D property this would translate to around £100 more a year in Council Tax.

Each local authority has since published its expected tax increase. The information was sent directly to residents, but can also be found on each Council’s website. On average, bills have risen by the just-under 5% that was expected.

Additionally, four Councils have been granted the special permissions needed for higher Council Tax increases.

Where was the Council Tax increase above 5%?

Thurrock, Slough, Working and Birmingham were all granted special permission to raise their Council Tax rates by 10% in April. This follows Birmingham Council’s issuing of a Section 114 notice last year, effectively announcing bankruptcy.

Birmingham Council were granted permission to raise their rates by double the normal maximum despite the government having ‘”expressed ongoing concern about the significant financial mismanagement at the council”.

Somerset Council also requested permission for a 9.99% increase, which was not granted.

What will my new Council Tax bill be?

How much you pay for Council Tax depends on the value of your home, as well as which local authority you live within.

Residents in England and Wales should have been contacted about how much their new bills will be. Live in London? You can check the new cost of your Council Tax here.

In Scotland, Council Tax rates have been frozen until April 1st 2025. Scottish residents will continue to pay the same amount for Council Tax throughout 2024.

Find out more information about how all your bills changed on April 1st here.