Average council tax bills in the UK are projected to reach nearly £3,000 within five years, according to analysis by the Conservative Party. The forecast, based on official figures released alongside the Budget, indicates a significant increase from the current average bill.
Official figures suggest that council tax receipts are expected to rise from £54 billion in the 2026-27 fiscal year to £70 billion by 2031-32. This projected increase means that the average band D property could face an annual bill of approximately £2,958 by 2031-32, a rise from the current £2,391. The Conservative Party's analysis estimates this represents an increase of almost £600 over the same period.
Conservative housing spokesman Katie Lam criticized the projected rise, stating that a £100 council tax giveaway announced by the government would be insufficient to offset the anticipated increase. She described the situation as a "council tax bombshell" and accused the Labour government of "giving with one hand while taking with the other."
The Office for Budget Responsibility (OBR) forecast, published alongside the Budget, assumes council tax rates will rise by 4.4 percent and 4.3 percent in the coming years. However, the actual increase could be higher if local authorities implement rates exceeding the OBR's projections. Council tax can be raised by up to 5 percent annually without requiring a local referendum.
John O'Connell, chief executive of the TaxPayers' Alliance, commented that families would struggle with this "huge hike to their biggest cost of living – tax."
A spokesperson for the Ministry of Housing, Communities and Local Government stated that the figures represent an OBR forecast and that decisions on council tax increases are made annually by local authorities, who are expected to prioritize taxpayers.