Council Tax
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the OBR’s Economic and Fiscal Outlook, 3 March 2026, para 3.41, and Table A.5, what estimate he has made of the potential impact on policy changes on referendum thresholds on the amount of council tax to be collected in (a) 2026-27, (b) 2027-28, (c) 2028-2029, (d) 2029-2030 and (e) 2030-31 financial years.
Answered by Alison McGovern
The Government has provided councils with longer-term certainty through the first multi-year Settlement in a decade. As part of this, we have set out our intention to maintain 3% + 2% referendum principles for the vast majority of councils in each year of the multi-year Settlement. The OBR has based its forecasts to 2030-31 on this and noted that policy changes announced since November are forecast to add £0.4 billion to council tax receipts by 2030-31.
The Government has not taken any decisions on referendum principles beyond the period of the multi-year settlement. Council tax levels are ultimately a matter for local authorities.
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