Will you be hit by one other payments rise? Slew of city halls already planning inflation-busting council tax rises in April – with one mulling an eye-watering 20% hike

Households across England are set to be hit with another bills rise as a slew of town halls plan inflation-busting hikes to council tax in April.

In a fresh blow to hard-pressed families, a number of local authorities have already unveiled proposals to increase council tax by the maximum 4.99 per cent for 2026/27.

Some cash-strapped councils are even considering asking for permission from the Government to breach that cap, with one mulling an eye-watering 20 per cent rise.

A 4.99 per cent rise in council tax is the maximum annual hike allowed, in normal circumstances, before councils are required to hold a local referendum.

The cap is made up of 2.99 per cent for general spending and a 2 per cent adult social care precept.

Last year, amid the debt crisis within local government, six councils were permitted by ministers to go ahead with cap-busting council tax increases of up to 10 per cent.

With local authorities currently putting together their budget proposals for the next financial year, a large number have proposed a 4.99 per cent increase – above the latest CPI rate of inflation at 3.2 per cent.

But residents in North Somerset and Warrington are poised to be hit by an even larger bills hike.

At a meeting last month, North Somerset Council leader Mike Bell warned there was ‘no painless option left’ for local residents as the local authority seeks to raise council tax above 4.99 per cent.

‘Higher council tax rises are now unavoidable if we are to keep essential services running and avoid a financial crisis that would do far more damage to our communities,’ the Liberal Democrat councillor said.

He added there was a real risk of North Somerset Council declaring effective bankruptcy without higher-than-usual council tax rises.

Mr Bell had previously told the BBC that even a 20 per cent increase in council tax maybe ‘wouldn’t be enough’. 

Warrington Council is also considering asking the Government for permission to increase council tax above the 4.99 per cent limit.

Denis Mathews, cabinet member for finance, assets and investments, said the local authority was facing ‘the most difficult budget position’ in its history.

‘It is an unprecedented financial challenge,’ the Labour councillor said.

‘Put simply, the money we receive in income, is far less than what we are spending on services.

‘This huge gap will need to be bridged, through making widespread service changes as a council, but also through seeking additional financial support from Government, which will buy us time to put things right.’

Shropshire Council is proposing a 4.99 per cent increase in council tax.

But it is also consulting local residents on higher increases as part of its budget process for 2026/27.

The consultation asks, if given permission by the Government, whether residents would agree with it hiking council tax by 6.99 per cent, 9.99 per cent, or 14.99 per cent.

Roger Evans, cabinet member for finance, said: ‘Councils across the country are facing significant financial pressures, and we are no exception.

‘While there’s lots of things we’re doing to stop and reduce spending and improve the way we work, this is not enough.

‘As well as our ask to borrow money from the Government, we must take difficult decisions to set a balanced budget.’

It previously emerged how Kent County Council, led by Reform UK, is set to hike council tax by the maximum 4.99 per cent amid claims a cost-cutting drive had failed.

The local authority was one of 10 English councils that Nigel Farage’s party seized control of at May’s local elections.

Reform’s success at the ballot box was followed by promises it would slash ‘wasteful’ spending by councils across the country.

The party established a ‘DOGE’ unit – based on the Department of Government Efficiency set up by Elon Musk in the US – to try and cut costs.

But Reform members of Kent County Council admitted they had been unable to find areas for huge savings and would likely have to hike council tax.

Diane Morton, Reform’s cabinet member for adult social care, told the Financial Times that services in Kent were already ‘down to the bare bones’.

‘We’ve got more demand than ever before and it’s growing,’ she said. ‘We just want more money.’

She added of an expected increase in council tax in Kent: ‘I think it’s going to be 5 per cent.’