Council Tax restrictions and underfunding

Council Tax in North Somerset remains lower than in most other areas in the South West. This is due to

• historically low annual Council Tax increases and;
• current rules that limit Council Tax increases to a maximum of 4.99% each year

Raising Council Tax beyond 4.99%

If a council wishes to raise Council Tax by more than 4.99% it must be agreed by referendum.

Due to the nationwide funding emergency, many councils are now able to increase their Council Tax beyond the 4.99% threshold. 

There are restrictions on Council Tax bands, so we are unable to raise further funds by changing the bands. 

For example

• government decides on Council Tax bands (rather than councils) and we cannot add new bands, for example tax wealthier households at a higher rate
• we can't make changes to Council Tax discounts, for example discounts for single people or large households
• we do not decide benefit levels or eligibility (beyond some limited Council Tax support flexibility)  
• we do not set business rates so we can’t increase these to gain more income or reduce them to  provide further support to local businesses

North Somerset has a low tax based compared with neighbouring councils. 

We have created a table to show how we compare to others in our area. 

It also shows a breakdown of how we share Council Tax with other local services.  

This lower tax rate further limits our income and ability to cover the increased cost of services. 

This combined with the 4.99% limit on Council Tax increases means that we will continue to be left behind other councils.

Average Band D Council Tax in North Somerset 2025/26

In 2024/25, the amount of core funding North Somerset Council received was £2,127 per dwelling. This was £414 less than the England average. Over the number of dwellings within North Somerset, this equated to £41m per year less than the England average.   

Our low tax base also means we received £9.1m less per year than our neighbours.  

This was calculated at 

• the average nationwide Council Tax of £1,820.33 - less North Somerset Council’s £1708.50 = £111.83
• £111.83 multiplied by our tax base of 81,449 = £9.1m shortfall 

This unfair funding sets North Somerset back. Coupled with savings we have had to make to balance previous budgets, it can feel as though you pay more council tax but receive less service.