Council tax increase: How much you could pay after price rise - and how your money will be spent

Households across England are bracing themselves for an above-inflation council tax hike, as local authorities are set to increase the price by the maximum 4.99% in April.

Local authorities who wish to exceed the maximum increase of 5% would be required to hold a referendum, however, councils across Merseyside are set to hike the price by 4.99% with 2% spent on adult social care services.

The amount you pay, or your Council Tax band, depends on the valuation of your property. For example, in Liverpool, an increase of 4.99% in 2024-25 would equate to an additional cost of around £64 per year for a Band A property - the lowest band and the rate paid by most council taxpayers across Merseyside. However, Band H households could see a hike of more than £179 per year.

How your council tax money could be spent in Merseyside

Across Merseyside, overall council tax is calculated based on your local borough council's service charge, an Adults Social Care precept, the Merseyside Police and Crime Commissioner precept, Merseyside Fire and Rescue precept, and the Liverpool City Region Mayoral precept.

In layman's terms, this means your council tax is spent on services such as sport and leisure facilities, the disposal of household waste, police services, public transport, schools and street repairs.

Council tax increases in each Merseyside borough

In Liverpool, the city council is working to close a financial black hole of £8.5m. However, the proposed total revenue generated through council tax in the next financial year - £235m - would potentially be outstripped by the bill the authority faces to fund adult social care during the same period - £247m. The budget plans - including the 4.99% council tax increase - will go forward to a special budget meeting of the full council on March 6.

Wirral Council is set to increase council tax by 4.99% and says it plans to spend over £2.2m on funding improvements across Wirral with a 'visible impact'. Labour council leader Paul Stuart said: “When I became leader last May, I said we must be honest and realistic with our residents about the challenges we face when developing a plan to navigate the difficulties of the present but to seize opportunities for the future of Wirral. We have made difficult decisions since May and more will come. However I believe that passing this budget tonight will mark a significant milestone in prioritising the needs of all the residents of Wirral.” The full budget is expected to be published in March.

St Helens Council has been recommended to approve the 4.99% increase to address its identified budget gap. Council leader Cllr David Baines said: “It’s been reported recently that 95% of councils are having to put up council tax by the full amount allowed this year – and, reluctantly, we’re one of them. If we didn’t raise it, we’d have to cut even more essential services.” Its proposed strategy will come before the cabinet at its Town Hall meeting on March 6.

In Knowsley, the council looks set to increase council tax by 4.99%, with a spokesperson stating: "If the council chooses to increase council tax by less than this amount, it will increase its deficit and forego funding which the Government assumes is available when making its grant allocations. This would leave the council facing greater deficits in future years and would make cuts to essential services unavoidable.” A full Knowsley Council meeting will take place March 6 when a final decision will be made on the budget and the proposed increase to council tax.

Sefton Council confirmed the decision to increase council tax by 4.99% at a full cabinet meeting on February 29. New Sefton Council Leader, Marion Atkinson delivered her first council budget speech and was quick to provide context to the council tax rises. She said: “A 4.99% council tax increase will be passed onto our residents, not by Sefton Council, but by the Tory government and which we will reluctantly vote on tonight.”

How much you could pay for council tax in each Merseyside borough

These figures are before any rises for Merseyside’s Policy and Crime Commissioner, Fire and Rescue, and the Liverpool City Region Mayoral precepts are taken into account.

• Liverpool: Based on the 2023/24 figure of £1,298.64 for a Band A council tax, a 4.99% increase of £64.81 would make the new total £1,363.45.
• Knowsley: Based on the 2023/24 figure of £1,168.78 for a Band A council tax, a 4.99% increase of £58.32 would make the new total £1,227.10.
• Sefton: Based on the 2023/24 figure of £1,235.93 for a Band A council tax, a 4.99% increase of £61.68 would make the new total £1,297.61.
• St Helens: Based on the 2023/24 figure of £1,138.09 for a Band A council tax, a 4.99% increase of £56.70 would make the new total £1,194.79.
• Wirral: Based on the 2023/24 figure of £1,198.99 for a Band A council tax, a 4.99% increase of £59.83 would make the new total £1,258.82.