Seven Councils Got Government Permission For Exceptional Council Tax Increases

Alright, grab your cappuccino and settle in, because I’ve got a story that’ll make you choke on your biscotti. Seven local councils in England just got the government’s stamp of approval to hit homeowners with exceptional council tax increases. That’s right—while you were trying to forget about your heating bill, these seven lucky authorities got a VIP pass to raid your wallet.

What’s the Deal with This “Exceptional” Tax Hike?

Normally, councils can only bump up council tax by a maximum of about 5% before they need a local referendum—like a public vote of doom. But these seven councils convinced Whitehall they’re in such dire financial straits that they need special permission to go above that cap. Think of it as a fiscal “get out of jail free” card, except the jail is your monthly budget.

The result? Some households face increases of 10% or more. That’s like ordering a small coffee and being charged for a venti with extra whipped cream—and the whipped cream is your mortgage payment.

Who Are These Rebels with a Taxing Cause?

Let’s name and shame, shall we? The seven councils include: Newham, Croydon, Thurrock, Slough, Windsor and Maidenhead, Birmingham City Council, and Warrington. Yes, even the royal borough of Windsor—home of the Queen’s swans—is getting in on the action. I’m picturing a swan with a tiny briefcase, filing for bankruptcy protection.

For context, Croydon has been in such a mess it’s practically the “payday loan” of local government. And Birmingham—Britain’s second-largest city—is hiking council tax by 21% over two years because they lost a massive equal pay case. That’s like betting the house on a horse named “Equality” and then forgetting to check the odds.

Why Are They So Broke? (Spoiler: It’s Not Just Avocado Toast)

The usual suspects are at play: aging adult social care, soaring inflation, and a government funding formula that’s older than the tubes in my flat. But here’s a surprising fact: some councils are still paying off debts from failed property deals. For example, Thurrock Council invested heavily in solar energy firms that went bust. I’m not saying they were “solar flared,” but someone definitely got burned.

Another fun nugget: Councils can’t just declare bankruptcy like a corporation—they’re legally required to keep services running. So when they run out of money, they have two choices: issue a “Section 114 notice” (the local government version of “I’m broke, don’t send bailiffs”) or ask for permission to tax you into the Stone Age. These seven chose the latter.

Council tax increases despite government incentives - BBC News

What Does This Mean for Your Wallet? (Brace Yourself)

If you live in one of these areas, expect your council tax bill to jump by hundreds of pounds per year. In Birmingham, the average Band D property will pay an extra £100 in 2025—then another £100 in 2026. That’s essentially a “rollover charge” on your own home.

But here’s the kicker: the government has been stingy with new housing benefit for low-income families, meaning many will have to choose between paying the tax and eating. I’m not laughing at that—I’m laughing at the absurdity of a system where a councillor can say, “Just reduce your avocado toast budget,” while they drive a council-funded hybrid SUV.

The “Exceptional” Loophole: A Comedy of Errors?

The law says councils can only apply for an exceptional increase if they’ve “demonstrated rigor” in their finances. But somehow, these seven managed to convince ministers they were so special they deserved a taxpayer-funded pity party. It’s like letting the kid who lost their lunch money negotiate a raise in their allowance.

One expert told the BBC that the process is “a bit of a farce” because the government rarely rejects applications. In fact, 100% of requests in 2024 were approved. So “exceptional” is starting to sound a lot like “it’s a Tuesday.”

Typical council tax in England will rise by 4.7% in April - BBC News

Silver Linings? (Spoiler: There Aren’t Many)

On the bright side, some councils promise the extra cash will stop care homes from closing or libraries from turning into luxury flats. But let’s be real—when’s the last time a council tax hike made your bin collection actually better? I’ll wait.

Here’s a surprising fact to chew on: Council tax is a regressive tax, meaning it takes a bigger chunk from poor people than rich ones. A mansion in Windsor pays the same percentage as a terrace in Slough. So while the Duke of Westminster is probably fine, your average electrician in Birmingham is funding a legal settlement from 2012.

How to Survive This (Without Moving to a Shed)

If you’re in a council-hiking area, you can appeal if your property band is wrong—but don’t hold your breath. You could also lobby your MP, but that’s about as effective as shouting at a swan. The real strategy? Start a local “revolution of one” by gardening your own vegetables and bartering lawnmowing services. Or—I joke, but only half—buy a shed and declare it a separate dwelling.

Ultimately, this is a tale of seven councils crying wolf, and the government handing them a megaphone. If you live in Croydon, Birmingham, or any of the others, I salute your tax-increasing courage. And if you don’t, just wait—your turn might be coming. After all, “exceptional” is now the new normal.

So enjoy your flat white while it’s still cheap. Because next year, you might be paying extra for the privilege of living in a country where your garbage truck runs on solar-powered dreams.