Why Huge Council Tax Rises Are Coming for Many in 2027

Many English councils face a severe funding crisis, forcing them to consider exceptional council tax rises from April 2027. This pressure means it is more important than ever for homeowners to ensure they are not already overpaying due to an incorrect council tax band, as any percentage increase will make existing errors more expensive.

Why are council tax bills expected to rise so much?

Councils in England are facing a multi-billion pound funding gap. The Local Government Association (LGA), which represents councils, warned in July 2026 that they face a £7 billion shortfall by 2028-29 just to maintain current service levels. [4, 7] This financial pressure comes from the rising cost and demand for essential services like adult social care, children's services, and support for the homeless. [7, 8]

A significant part of this problem is a looming deadline in March 2026. For years, councils have been allowed to keep massive deficits related to Special Educational Needs and Disabilities (SEND) support off their main accounts using a temporary accounting measure. [2, 3] When this measure expires, these deficits—worth billions nationwide—will hit their budgets, potentially making many councils technically insolvent overnight. [2, 6]

With limited ways to raise money, councils are looking to council tax. The government has already given some councils permission for rises above the usual 5% cap, signalling that significant increases are seen as a necessary solution. [15]

Which areas could see the biggest rises?

While the financial strain is widespread, some areas have been highlighted as considering very large increases for the 2027-28 financial year. In August and September 2026, reports emerged that several London councils were exploring unusually high rises to cope with funding changes. [14, 15]

These include:

• Wandsworth Council: Reportedly considering a hike of up to 160%. [15]
• Westminster Council: News reports suggested a rise of up to 100% was being considered. [15]
• Kensington and Chelsea: Also granted permission for an above-cap increase. [15]

These are not isolated cases. The LGA has stated that an unprecedented 36 councils in England required 'exceptional financial support' from the government to balance their budgets for 2026/27. [7, 8] This illustrates a systemic problem, meaning homeowners across many parts of the country can expect to see substantial increases in their bills.

How does a council's financial trouble affect my tax band?

A council's financial situation does not directly change your property's council tax band. Bands are set by the Valuation Office Agency (VOA), not the council. The VOA bases your band on the property's estimated value on 1 April 1991 in England (or 1 April 2003 in Wales).

However, the council's financial health directly impacts the amount of council tax you pay for that band. The council sets the annual tax rate for each band to fund its budget. When the council faces a shortfall, it raises this rate. If your home is in an incorrectly high band, a 10% rate increase from the council means you are paying 10% more on an already inflated bill. An error that costs you £200 a year now could cost you £240 a year after a 20% tax hike.

What should homeowners do now?

With significant bill increases on the horizon, the single most effective step is to ensure the foundation of your bill—your council tax band—is correct. If you are in the wrong band, you have likely been overpaying for years. A successful band appeal can result in your band being lowered, which not only reduces your future bills but can also lead to a backdated refund from the date you moved into the property.

Checking your band is a straightforward process. You need to find out what bands your neighbours are in. If nearly identical properties to yours are in a lower band, it is a strong indicator that you may have a case for a challenge with the VOA.

Given the financial pressures, councils will be maximising their income. This makes it crucial for you to verify you are paying the correct amount. Challenging your band does not cost anything if you do it yourself, and it is the only way to protect yourself from paying more than your fair share as council tax rates climb.