UK Local Councils Raise Taxes to Fund Social Care

Across England and the UK, local authorities have approved significant council tax increases for the 2026/27 financial year to combat rising social care costs and funding deficits. Approximately 82 percent of England's top-tier authorities plan to raise taxes by at least 4.99 percent, the maximum allowed without a local referendum. Local councils such as Brent, Southampton, Hillingdon, Hampshire, and Peterborough have all implemented this 4.99 percent cap.

Some authorities sought and received permission to exceed the standard cap. North Somerset Council approved an 8.99 percent increase to avoid government commissioners, while Shetland Islands Council voted for a 7.3 percent rise to address a £26.1 million deficit. Conversely, Essex County Council proposed a lower increase of 3.95 percent, the only top-tier council in the East of England to stay below the maximum limit.

Telford and Wrekin Council passed a 4.99 percent increase as part of a £230-million budget prioritizing social care and infrastructure. While leaders in these regions argue the hikes are necessary to protect frontline services and adult care, opposition members and some council leaders have criticized the burden on residents facing inflation. The Ministry of Housing, Communities and Local Government stated that local authorities should prioritize taxpayers when setting these levels, while the Local Government Association warned that funding may not keep pace with inflation.