Council tax changes for 2026/27: what is going up and why
English bills rose by around 4.9 per cent on average in April 2026. Welsh and Scottish bills rose by more. Seven English councils were granted permission to raise above the 4.99 per cent referendum cap. The new second home premium is now widely applied.
The referendum threshold
Each year the government sets a maximum percentage by which English councils can raise council tax without a local referendum. For 2026/27, the threshold is:
- Upper-tier authorities (counties, unitaries, London boroughs, mets): up to 4.99 per cent (2.99 per cent core plus 2.00 per cent adult social care precept).
- District councils: up to 2.99 per cent or £5, whichever is greater.
- Police and Crime Commissioners: up to £14 on a Band D bill (set separately by central government).
- Fire authorities: up to 2.99 per cent or £5.
- Parish councils: no statutory cap, but expected to follow guidance.
Going above these limits requires a local referendum, which is costly and almost always defeated. As a result, councils typically raise by exactly the maximum allowed.
The seven councils granted above-cap rises
Where a council faces severe financial pressure, the government can grant a special direction allowing it to raise above the referendum cap without a vote. Seven councils received that permission for 2026/27.
| Council | Approved increase |
|---|---|
| Bournemouth, Christchurch and Poole | 6.74% |
| North Somerset | 8.99% |
| Shropshire | 8.99% |
| Trafford | 7.49% |
| Warrington | 7.49% |
| Windsor and Maidenhead | 7.49% |
| Worcestershire | 8.99% |
Each of these councils is in financial distress (typically with a section 114 notice or equivalent) and the rises are intended to stabilise their finances.
Second home premium: now widely applied
The Levelling-up and Regeneration Act 2023 gave English councils the power, from 1 April 2025, to charge a 100 per cent premium on furnished properties that are not the occupant's sole or main residence. By 2026, the majority of English councils have implemented or announced the premium. Welsh and Scottish governments have similar (and in some cases more aggressive) powers.
Limited exceptions apply: properties actively marketed for sale for under twelve months, homes being substantially renovated, job-related accommodation, and certain inherited homes within a two-year window.
Empty property premiums
The same Act sharpened the empty homes premium. From 2025/26 onwards, councils can apply:
- Up to 100 per cent extra after one year empty (down from two).
- Up to 200 per cent extra after five years.
- Up to 300 per cent extra after ten years.
By April 2026, most councils have brought their empty homes policy into line with these new powers.
Worked example: a Band D bill at the 4.99 per cent cap
Suppose your 2025/26 Band D bill was £2,281. A 4.99 per cent rise would take it to £2,395 in 2026/27, an increase of £114. Spread over twelve months, that is roughly £9.50 a month more. Spread over the standard ten-month schedule, it is closer to £11.40 a month more.
What is changing in council tax administration
The government has signalled an intention to “modernise” council tax administration. Proposals consulted on in 2026 include simpler digital billing, a national exemption portal, and clearer rules on second-home classification. Detailed legislation is expected during 2027.
Frequently asked questions
Is council tax going up in April 2026?
What is the referendum threshold for 2026/27?
Are second home premiums new in 2026?
Will my bill rise by exactly 4.9 per cent?
Related: see how your council compares, all the discounts you can claim to offset the rise, and our 10 ways to reduce the bill.