England’s council tax reform news is centered on two tracks: the government is changing how council tax is billed and collected, and it is also adjusting how funding and tax rises are handled for councils in financial trouble. The most concrete recent reform is a June 2025 plan to make 12 monthly payments the default, improve support for struggling households, and reduce harsh escalation for missed payments.[3][4]
What is changing
The June 2025 consultation says the government wants council tax to be simpler and fairer, including 12-month billing by default instead of the traditional 10-month model. It also proposes slower, less punitive recovery for arrears, clearer support for vulnerable households, and better information on what council tax bills fund.[4][3]
Latest funding pressure
The latest big political issue is not a full redesign of council tax bands, but councils asking for permission to raise bills above the usual limit because of budget pressure. In February 2026, reports said seven councils were allowed to go beyond the standard cap, with the government framing the increases as lower than what councils requested.[1][5]
Wider reform debate
There is still a broader debate about a more fundamental overhaul of council tax, but it remains politically difficult because changes can shift costs between regions and household types. Commentary in late 2025 described reform as hard to implement, especially once proposals affect both wealthier and poorer councils differently.[2][8]
Practical takeaway
So the latest news is mostly about administration reform plus targeted rises, not a wholesale replacement of council tax. The government is trying to make bills easier to manage while also giving some struggling councils room to increase charges or receive extra support.[5][1][3]
Would you like a short timeline of the main England council tax reform announcements from 2025 to 2026?
Sources
Seven local authorities will be allowed to increase their council tax above the usual 5% cap, the Government has announced.
www.localgov.co.ukThe latest breaking news, comment and features from The Independent.
www.independent.co.ukThree of the councils, including Reform-controlled Worcestershire, are likely to put up bills by 9%.
www.bbc.co.ukStay informed with the latest news, video, live updates and expert analysis about Council tax from across the BBC.
www.bbc.co.ukMoving forward the government is committed to providing a multi-year funding settlement starting in 2026 to 2027, the first in over a decade. We are also acting to place councils on a firmer footing in the long term, with deep changes to the way we assess need and resources, and how we allocate funding across the system. It is not fair that overlooked and deprived places are punished by the funding system, and we are determined to create a fairer system across the country. … We believe there...
www.gov.ukChanges to the administration of council tax will make life easier for working people
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