Council Tax
The question
To ask the Secretary of State for Housing, Communities and Local Government, further to the statistical release, Council Tax levels set by local authorities in England 2026 to 2027, of 25 March 2026, for what reason the 4.9% increase in Band D council tax differs from the 4.4% increase figure for England listed in Table 4.1.
Answered by Ministry of Housing, Communities and Local Government
The 4.4% figure is the Office for Budget Responsibility’s forecast, produced prior to the release of the 4.9% in the outturn statistics published by the Department. The OBR methodology assumes 95% take-up of referendum principles, whereas actual take-up of referendum principles was different. In addition, the forecast does not reflect the increase to referendum principles for some authorities. The following authorities were set higher referendum principles: North Somerset, Shropshire, Worcestershire, Trafford, Windsor and Maidenhead, Warrington, and Bournemouth, Christchurch and Poole. Some fire and police authorities were also granted an increase to their principles. The following police authorities were permitted to increase by £18.50, instead of £15: Bedfordshire, Cheshire, Durham Gloucestershire, Humberside and Northumbria. Northamptonshire Fire and Rescue were permitted to increase by £10, compared to the £5 principle for all other Fire Authorities.
The OBR forecast assumes a core increase of 2.99% for Combined Authorities and Parish Precepts. However, Combined Authorities and Parish Precepts are not subject to referendum principles and their actual increases were 12.1% and 9.7% respectively.
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