Council Tax: Tax Yields
The question
To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the Answer of 25 June 2025 to Question 60934 on Council Tax: Tax Yields, what the monetary amount of the estimated receipts from council tax in England only is in each year of the Spending Review period that provides the base for the core spending power budget line in the Spending Review 2025.
Answered by Jim McMahon
This Spending Review provides over £5 billion of new grant funding over the next three years for local services that communities rely on. This includes £3.4 billion of grant funding that will be delivered through the Local Government Finance Settlement within financial years 2026-27 to 2028-29.
There will be an average overall real terms increase in local authority core spending power (which includes council tax, locally retained business rates and government grant) of 2.6% per year over the next multi-year settlement (2026-27 to 2028-29). This is set out in Table B.2 of the 2025 Spending Review.
The assumed referendum principles of a 3% core principle and a 2% adult social care precept are in line with the previous government’s policy and OBR forecast. The Department will publish updated estimates as part of the Local Government Finance Settlement (LGFS) 2026-27, in the usual way, including the specific core spending power figures for each local authority. It is for individual councils to set their own level of council tax.
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