The Ministry of Housing, Communities, and Local Government says outstanding council tax debt has reached a new high of £7.4 billion across England. 

This marks an increase of 11.3% year-on-year when compared with the figure at the end of 2024-2025, which stood at £6.6 billion.

Pressure is building for councils tax reform and the likely next Prime Minister, Andy Burnham, is an advocate for change.

A spokesperson for the campaigning debt charity StepChange says: “With one in three of those coming to StepChange behind on this bill, these latest figures are no surprise.

“[They] point to a system that perpetuates debt with little to no constructive route out. 

“We have also seen over the last few years a wider, concerning trend of people struggling to afford essential bills and facing problem debt as a result.

“Council tax debt reform is an urgent priority, and existing collection rules must change, as was recently signalled by the government. 

“We also need to see a firm commitment to a pre-action protocol and increased take up of council tax support, which is a benefit that goes widely under-claimed. Without these interventions, we will continue to see this debt figure rise”