Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the Written Statement of 28 November 2024 on Local Government Finance, HCWS265, what the (a) estimated and (b) assumed level in council tax receipts is in absolute terms in (a) 2024-25 and (b) 2025-26 on which the settlement is based.
Answered by Jim McMahon
It is for local authorities to decide at what level they set their council tax. The government will maintain the previous government’s policy of a 3% core council tax referendum principle and the 2% principle for the adult social care precept, in line with OBR forecasting. The full set of proposed referendum principles is set out in the Provisional Local Government Finance Settlement.
Based on these referendum principles, the assumed council tax requirement for Core Spending Power in 2024-25 is £36.2 billion. In 2025-26 it is £38.3 billion. These figures exclude parish precepts, police and fire authorities.
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