In 2026, most English councils seek smaller tax hikes due to funding reforms, but some face steep increases amid ongoing financial pressures.

In 2026, only about 10 to 20 English councils are seeking the maximum 4.99% council tax rise, a sharp drop from 134 last year, due to government funding reforms and multi-year settlements. However, 25 councils are still proposing significant increases below the cap, while six—like North Somerset, Shropshire, and Worcestershire—have been allowed to raise taxes up to 8.99% amid financial pressures. Reform UK-led councils are behind many of the hikes, though some, including Kent, face criticism over financial risks and low reserves. The government has pledged over £78 billion in unringfenced funding for 2026/27, but the Local Government Association warns funding still won’t match inflation and rising service demands, with experts predicting continued tax increases in future years.