Residents across Cambridgeshire will soon see changes in their Council Tax bills, with an increase set to take effect from April 2025. Cambridgeshire County Council has confirmed a 4.99% hike, marking the maximum increase allowed without requiring a local referendum. This adjustment aims to address significant budget pressures, particularly in adult social care and essential public services.
How Much Will Your Council Tax Increase?
The 4.99% rise in Council Tax consists of two components:
- 2.99% General Increase – To support overall council services, including road maintenance, education, and local infrastructure.
- 2% Adult Social Care Precept – Dedicated funding for the increasing costs of adult social care services.
For a Band D property, this equates to an annual increase of approximately £80, bringing the total Council Tax bill to £2,355.41 for Cambridge City residents. The final amount varies based on Council Tax bands and local authority charges.
New Council Tax Rates for 2025-26 (Cambridge City)
| Council Tax Band | Property Value (as of 1991) | Annual Charge (£) |
|---|---|---|
| A | Up to £40,000 | 1,570.27 |
| B | £40,001 to £52,000 | 1,831.99 |
| C | £52,001 to £68,000 | 2,093.70 |
| D | £68,001 to £88,000 | 2,355.41 |
| E | £88,001 to £120,000 | 2,878.83 |
| F | £120,001 to £160,000 | 3,402.26 |
| G | £160,001 to £320,000 | 3,925.68 |
| H | Over £320,000 | 4,710.82 |
For a full breakdown of Council Tax bands across Cambridgeshire, residents can visit Cambridge City Council.
Where Does Your Council Tax Go?
The revenue generated from Council Tax funds essential services across various authorities. The distribution of funds for a Band D property in Cambridge City is as follows:
- Cambridgeshire County Council – £1,700.64 (72.2%)
- Police and Crime Commissioner – £299.43 (12.71%)
- Cambridge City Council – £232.13 (9.86%)
- Fire Authority – £87.21 (3.7%)
- Cambridgeshire & Peterborough Combined Authority – £36 (1.53%)
More details can be found on the Cambridgeshire County Council website.
Why Is the Council Tax Increasing?
Cambridgeshire County Council has justified the tax hike by citing financial challenges, including a £34.2 million budget gap for the 2025-26 fiscal year. The increase in Council Tax is expected to generate around £20 million, but a £14 million shortfall remains, which will require additional budget management measures.
Councillor Lucy Nethsingha, Leader of Cambridgeshire County Council, stated, “We are facing unprecedented financial pressures due to rising costs in adult social care and essential services. This increase is necessary to ensure that we continue providing vital support to residents.”
How Will This Affect Households?
The rise in Council Tax will impact households differently based on property value and location. While some may struggle with the higher costs, certain groups may be eligible for Council Tax reductions or exemptions, including:
- Low-income households
- Pensioners
- People with disabilities
- Full-time students
Residents can check their eligibility for discounts or exemptions via the UK Government’s Council Tax Reduction page.
Public Reaction and Concerns
Many residents have expressed concerns about the financial burden, particularly during a period of rising living costs. Local resident John Davies, who owns a Band D property, remarked, “While I understand the need for funding public services, an increase of nearly £100 a year feels steep. We are already dealing with high energy and food prices.”
At the same time, some residents acknowledge the necessity of the increase, especially for improving local services.
Final Thoughts
The new Council Tax rates will come into effect from April 1, 2025. While the increase helps bridge the funding gap for essential services, it remains a contentious issue for many households. Residents are encouraged to review their tax bands, explore available support, and engage with their local council for any clarifications.
For the latest updates on Council Tax changes and financial assistance, visit the Cambridgeshire County Council website.
Vikas is a seasoned finance writer with a keen eye for unraveling complex global financial systems. From government benefits to energy rebates and recruitment trends, he empowers readers with actionable insights and clarity. When he’s not crafting impactful articles, you can find him sharing her expertise on Social Media. You can connect with him via email at [email protected].
