Why is a referendum not required for an increase in charges?

Any authority proposing an excessive increase in council tax must hold a local referendum.

Thresholds have been published for the 2026-27 financial year. Authorities will have to raise council tax by less than the threshold to avoid a referendum. 
 
The relevant basic amount of council tax of an authority is excessive if:

• The local authorities with social care responsibilities (county and unitary authorities) basic amount of council tax is 5% (of this, 2% is available for adult social care and 3% for general spending), or more than 5%, greater than its relevant basic amount of council tax for 2025- 26.
• The Non-metropolitan districts (Breckland) basic amount of council tax for 2026-27 is:

(a) 3%, or more than 3%, greater than its relevant basic amount of council tax for 2025-26; and
(b) more than £5 greater than its relevant basic amount of council tax for 2025-26.

• The Police and Crime Commissioners (PCCs) is excessive if the authority's relevant basic amount of council tax for 2026-27 is more than £15 greater than its relevant basic amount of council tax for 2026-27.
• No principles were applied to parish and town councils.