Council tax could rise if authority given go-ahead

New government proposals could see councils able to request council tax flexibility

Council tax could be increased for Shropshire Council residents beyond the normal threshold if the authority is allowed to do so under new proposals.

Councils can increase their share of council tax by three per cent each financial year, plus an extra two per cent to help pay for social care costs.

In new proposals published on Thursday, the government said it may consider local requests for council tax flexibility, where an authority is facing "significant local financial difficulty" and sees increases as "critical to managing financial risk".

Shropshire Council's leader, Heather Kidd, told the BBC the authority would make a request if it met criteria, because it needs the additional income.

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The potential change is part of the government's local government finance policy statement, which are proposals for 2026-27 to 2028-29.

They are subject to ongoing consultation and change, followed by debate and a vote in the House of Commons.

The plans said the government would not agree to requests for additional flexibilities from authorities where council taxpayers are already paying more than average.

"We will also consider the impacts of any proposed council tax increase, including on a local authorities' ability to provide key services and on taxpayers," it said.

"We expect any authority requesting an additional increase to ensure that appropriate support is put in place for vulnerable households, including reviewing the provision in their council tax reduction scheme and their discretionary discount policy for taxpayers in hardship."