UK's Most Expensive Council Tax Areas 2025-26

Rutland council maintains England's highest council tax at £2,671 for Band D properties in 2025-26 for the second year in a row, while Falkirk in Scotland approved the UK's steepest percentage increase at 15.6%. Bradford received government approval for England's highest rise at 9.3%, and Pembrokeshire leads Wales also with a 9.3% increase. These figures reflect unprecedented financial pressures on local authorities, with rising social care costs and reduced government funding driving council tax to record levels across all three nations.

The average Band D council tax in England for 2025-26 is £2,280, representing a 5.0% increase from the previous year. Scotland sees an average 9.5% rise, while Wales averages 7.2%.

Rutland County Council's Band D charge of £2,671.01 includes parish precepts, making it the most expensive local authority in England. The council increased rates by 4.99% for 2025-26. Rutland's high council tax reflects its small population base (approximately 41,000 residents) relative to service delivery costs. With fewer taxpayers to share the burden, rural authorities like Rutland consistently rank among England's most expensive areas.

Bradford Council was granted exceptional permission by the UK Government to increase council tax by 9.99%, making it one of only six councils in England allowed to exceed the standard 4.99% referendum cap. The increase adds £3.67 per week (£191 annually) to an average Band D household. Bradford committed this would be a one-off measure for 2025-26, designed to avoid £111 million in borrowing costs over 20 years.

Merthyr Tydfil has the highest Band D council tax in Wales at £2,464, though its percentage increase of 5.8% remains below the Welsh average. According to Welsh Government data, the average Band D council tax across Wales for 2025-26 is £2,170, comprising £1,747 for county councils, £374 for police, and £50 for community councils.

Pembrokeshire leads Wales with the highest percentage increase at 9.3%, officially recorded by the Welsh Government as 9.2% in their statistical release. County council increases across Wales averaged £119 or 7.1% over the previous year. Pembrokeshire faced a £26.9 million funding gap for 2025-26, with social care demand and increased National Insurance contributions creating significant budget pressures.

Midlothian Council charges Scotland's highest Band D rate at £1,666, combining a £151 increase (10.0%) from the previous year. Scotland's council tax rates remain significantly lower than England and Wales due to different valuation methodologies and a council tax freeze that ended in 2024.

Falkirk Council approved Scotland's highest percentage increase at 15.6%, adding £213 annually to Band D households. This rise follows a £33 million funding gap, with social care obligations consuming a significant portion of the budget. Despite the increase, Falkirk identified the need for £3 million in cuts to essential services like waste management and road gritting.

Three interconnected factors explain why 2025-26 sees some of the steepest council tax rises in decades:

National Insurance contribution increases: The UK Government raised employer National Insurance contributions in autumn 2024. Pembrokeshire County Council estimated this added £4.9 million in additional budget pressure. Local authorities employ significant workforces, making payroll cost increases particularly impactful.

Sustained social care demand growth: An aging population and increased complexity of care needs drive costs upward. Falkirk faced a £33 million funding gap, largely attributable to social care obligations. Bradford noted that even with a 9.99% increase, savings of £42.8 million were still required for 2025-26.

Legacy of austerity: Bradford Council calculated that over 14 years, £350 million was cut from its government grant. The council's decision to increase rates by 9.99% avoids £111 million in borrowing costs over 20 years, but reflects the cumulative impact of reduced central funding.

According to GOV.UK data, 294 out of 384 English authorities subject to referendum principles used the maximum flexibility available to them in 2025-26, indicating widespread financial pressure across local government.