Hidden council tax bills to hit THOUSANDS of households as raids set to raise £1billion

Parish councils across England are set to collect almost £1billion in the coming year through local tax rises that face no legal upper limit, new figures show.

Around nine million households currently pay a parish or town council precept on top of their standard council tax bill.

These charges are forecast to generate £941million in 2026–27 — an 8.2 per cent rise on the £859million collected this year.

The amount raised through parish precepts has more than doubled over the past decade, with official projections showing revenue will exceed £1billion for the first time in 2027–28.

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Unlike county, unitary and district councils, parish authorities are not bound by referendum limits that cap annual council tax rises.

Larger councils generally cannot increase bills by more than 4.99 per cent without triggering a public vote or securing ministerial approval.

Analysis of MHCLG figures shows around 3,800 parish councils introduced increases above that threshold in April. The average Band D parish precept has now reached £100 for the first time — an £8 rise on the previous year.

Elmton Parish Council in Derbyshire recorded the highest average Band D precept for the second year running, with households paying £557.

Around 80 parish councils more than doubled their precepts for 2026–27. Combe Raleigh in Devon saw the sharpest percentage increase, with annual charges surging 1,860 per cent, from 91p to £17.84.

In Surrey, Seale and Sands Parish Council raised its levy by 259 per cent, pushing average Band D bills from £49 to £177.

The council said the higher charges — expected to raise £90,700 annually — would “fund its services and activities”.

Political criticism has mounted over the scale of the rises. David Simmonds, the shadow communities minister, accused the Government of allowing council tax increases to “spiral”.

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“Labour’s refusal to apply the protections of local referendums to the largest parish precepts has opened the door to huge hikes,” he said.

Earlier this year, shadow housing secretary James Cleverly questioned whether parish councils’ taxation powers should be restricted and whether referendum protections should be extended to them.

Labour minister Alison McGovern confirmed the Government was not considering such measures, saying responsibility lay with principal councils to work with parish and town authorities to prevent excessive increases.

As many as 29 parish councils introduced a precept for the first time this year. In Hartleyburn, Northumberland, Band D households now face an £87 annual charge after previously paying nothing.

Benjamin Elks, campaigns manager at the TaxPayers’ Alliance, said residents would be “absolutely furious” at the scale of the rises.

“It cannot be right for town and parish councils to impose uncapped, inflation‑busting tax increases, particularly when families are already dealing with a cost‑of‑living crisis,” he said.

Andrew Dixon, chairman of Fairer Share, said the system had created a postcode lottery, with households paying vastly different amounts depending on local governance structures rather than their ability to pay.

A Labour spokesman said ministers had retained the previous administration’s approach of not imposing referendum limits on parish councils.

“We are clear that councils should protect taxpayers from large rises and ensure any increase is justified,” he said.

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