Council tax increases will be kept at the 5% cap next year, Labour have confirmed.

Kemi Badenoch yesterday in the Commons questioned the Prime Minister about the threshold limiting the amount councils can increase council tax by without a referendum.

Keir Starmer responded that MPs ‘will know what the arrangements are', prompting the Conservative leader to respond: ‘I think the house would have heard that the Prime Minister could neither confirm nor deny whether the cap on council tax was being raised.'

The PM's press secretary later confirmed: ‘The threshold remains the same.'

Government statistics show the average band D council tax set by local authorities in England for 2024-25 was £2,171, which represented an increase of £106 or 5.1% on the previous year.