The usual suspects are at play: aging adult social care, soaring inflation, and a government funding formula that’s older than the tubes in my flat. But here’s a surprising fact: some councils are still paying off debts from failed property deals. For example, Thurrock Council invested heavily in solar energy firms that went bust. I’m not saying they were “solar flared,” but someone definitely got burned.
Another fun nugget: Councils can’t just declare bankruptcy like a corporation—they’re legally required to keep services running. So when they run out of money, they have two choices: issue a “Section 114 notice” (the local government version of “I’m broke, don’t send bailiffs”) or ask for permission to tax you into the Stone Age. These seven chose the latter.
Council tax increases despite government incentives - BBC News
What Does This Mean for Your Wallet? (Brace Yourself)
If you live in one of these areas, expect your council tax bill to jump by hundreds of pounds per year. In Birmingham, the average Band D property will pay an extra £100 in 2026—then another £100 in 2026. That’s essentially a “rollover charge” on your own home.
But here’s the kicker: the government has been stingy with new housing benefit for low-income families, meaning many will have to choose between paying the tax and eating. I’m not laughing at that—I’m laughing at the absurdity of a system where a councillor can say, “Just reduce your avocado toast budget,” while they drive a council-funded hybrid SUV.
