Council Tax: Referendums
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the draft Local Government Finance Settlement published on 17 December 2025, whether his department will consider requests for higher council tax referendum thresholds for other councils than the six councils mentioned.
Answered by Alison McGovern
The provisional settlement sets out the eligibility criteria for removing referendum principles for the last two years of the multi-year settlement period. We consider that only six authorities meet the criteria.
For the vast majority of councils, the government intends to maintain a core referendum threshold of 3%, and a 2%, adult social care precept over the multi-year Settlement. However, the government is under no illusions about the pressures councils are facing. Following precedent set by the previous government, we will consider requests for additional limited council tax flexibility from councils in extremely difficult financial situations on a case-by-case basis. All local authorities should continue to do all they can to manage their finances and protect vulnerable taxpayers.
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