Households across England are bracing for an additional £1 billion in council tax charges as nearly nine million residents pay parish or town council precepts. These precepts are local taxes added on top of standard council tax to support the operations and services of parish councils.
Estimates show that parish councils will collectively raise £942 million through precepts in 2026-27, an increase from £859 million the previous year. In areas where parish precepts apply, bills are expected to increase by an average of 8.2%.
Unlike county and district authorities, parish and town councils are permitted to raise tax rates by more than 4.99% annually without needing to hold a referendum or seek government approval. This exemption allows them to implement substantial yearly increases.
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David Simmonds, Conservative Party shadow communities minister, criticized the Labour government, stating that council tax is “soaring on Labour’s watch.” He added, “Labour’s refusal to apply referendum protections to the largest parish precepts has opened the door to huge hikes.”
Andrew Dixon of the campaign group Fairer Share highlighted the inconsistent impact on residents, calling it a “postcode lottery.” He explained that escalating parish council taxes reflect wider financial pressures on local government, forcing increased costs onto localized tax bases. The result is a fragmented system where tax bills vary dramatically depending on local governance rather than residents’ ability to pay.
Benjamin Elks from the TaxPayers’ Alliance warned that taxpayers would be “absolutely furious” over such significant increases. He emphasized that while parish councils serve an important role, uncapped and inflation-exceeding tax hikes are inappropriate, especially amid the ongoing cost of living crisis.
A spokesperson from the Ministry of Housing, Communities and Local Government stated, “We have maintained the previous government’s policy of not setting tax limits for parish and town councils and will continue to review this annually. We stress that councils should protect taxpayers from large rises and ensure any increase is justified.”