Many councils have yet to confirm their rates for the new financial year, but initial data suggests the majority of areas will impose the maximum increase of 4.99%.
But why is council tax going up next month, and is there anything you can do to reduce your bill?
How much could council tax rise by?
Since April 2023, local authorities in England have been allowed to increase council tax by up to 4.99%, including the social care precept (if your council qualifies) and without the need for a local referendum. Previously, they could only increase the charges by a maximum of 2.99%.
The full data for 2024-25 will be released on 20 March, but the County Councils Network predicts that 93% of areas will levy the maximum increase this April.
Six councils with particularly stretched finances have been given permission by the government to raise taxes by more than 4.99%. Collectively, these councils have around 2.5 million residents.
Bradford will be able to increase the levy by a further 5%, while Windsor and Maidenhead and Newham can increase bills by an extra 4%. The remaining councils – Birmingham, Somerset and Trafford – have been granted a 2.5% uplift.
Several councils were not given permission to impose larger increases, including Hampshire, which had asked for a 15% rise.
What's happening in the rest of the UK?
There are no caps on the amount that local authorities can increase council tax by in Scotland or Wales.
Council tax in Scotland was frozen last year, but local authorities will be able to increase rates again in 2025-26. Some areas could see bills rise by up to 10%.
Rises in Wales look likely to be similarly steep, with residents in Pembrokeshire bracing themselves for a 9.85% increase in their bills.
Northern Ireland's system works differently to the rest of the UK, with rates calculated by multiplying the 'rateable capital value' of a property by the 'domestic rate poundage' – the sum of the domestic regional rate and domestic district rate.
The domestic district rate is set by the 11 councils in Northern Ireland, and all have already chosen to increase bills for 2025-26. Belfast will see the biggest rise, at 5.99%
Council tax has risen by more than £700 in the past decade
A 4.99% increase in April could see average annual band D council tax rates in England rise by £108, to £2,279 a year.
As this table shows, council tax has increased every year for the past decade, soaring from £1,468 in 2014-15 to £2,171 in 2024-25:
What's behind recent council tax rises?
Council tax makes up around half of local authority funding, according to the Institute for Government (IfG), so increasing rates is an obvious choice if other revenue streams are drying up.
IfG figures show that central government funding for councils in England fell by 10.2% between 2009-10 and 2021-22. That, combined with inflation, higher energy costs, and increased demand for services such as child and social care, has put pressure on local authorities to increase council tax.
Some councils have felt the squeeze more than others. Last year, Birmingham Council hit the headlines after it filed a Section 114 notice, declaring effective bankruptcy. To help it stay afloat, it was allowed to increase council tax by 10% for 2024-25.
Find out more:Ways to reduce your council tax bill
It’s likely your council tax rates will go up in 2024-25, but there are some circumstances in which you may be able to reduce your bill:
Apply for a discount:Empty property rules:Review your council tax band:How to get help if you can’t pay
Failing to pay your council tax bill can have serious consequences.
If you don't pay after receiving a final notice, your council can take legal action, including getting your employer to pay your unpaid tax directly from your wages, or sending in bailiffs. If everything else fails, you can be taken to court and even face prison time.
There are a few things you can do if you're struggling, however:
Contact your local authority: Apply for hardship relief:Apply for council tax reduction:source https://www.which.co.uk/news/article/why-millions-face-council-tax-hikes-of-more-than-5-this-spring-acAjC4E9I710