Council Tax
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the oral contribution of the Prime Minister during the oral question on council tax of 9 July 2025, Official Report, Column 939, what the evidential basis for the level of council tax in this Parliament is.
Answered by Jim McMahon
The government is not responsible for council tax levels, which are decided by local authorities, taking account of their local circumstances. The government does set referendum principles on these increases. Referendum principles strike a balance between giving councils the flexibility to generate income for local services and giving taxpayers the final say over excessive increases.
At this year’s Spending Review the government confirmed, in line with the previous government’s policy and OBR forecasts, that it intends to maintain the 3% threshold with an additional 2% for the adult social care precept. Final principles will be confirmed at the local government finance settlement and be subject to approval by the House of Commons in the usual way.
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