UK Councils Set Council Tax Rises Up to 4.99% for 2026-27

Local councils across the United Kingdom are set to increase council tax rates for the 2026-27 financial year, with most proposing hikes near the government's 4.99 percent cap amid ongoing financial strains from social care demands, inflation, and limited central funding. Decisions announced in recent weeks vary by authority, reflecting a mix of government grants, public consultations, and budget shortfalls, affecting millions of households from April onward.

In Durham County Council, officials reduced a planned 3.1 percent rise to 1.99 percent after receiving an additional 3.7 million pounds in government funding through the new Recovery Uplift Grant. The grant, announced on February 9, provides 440 million pounds over three years to 41 councils facing low core spending power growth. Council Leader Andrew Husband stated that passing on the benefit to taxpayers offers "some respite next year," though much of the funding tapers off by 2028-29. The authority also scrapped a 250,000-pound review of household waste recycling centers following public feedback, while managing pressures in adult and children's social care. The budget awaits full approval on February 18.