The potential change is part of the government’s local government finance policy statement, external, which are proposals for 2026-27 to 2028-29.
They are subject to ongoing consultation and change, followed by debate and a vote in the House of Commons.
The plans said the government would not agree to requests for additional flexibilities from authorities where council taxpayers are already paying more than average.
“We will also consider the impacts of any proposed council tax increase, including on a local authorities’ ability to provide key services and on taxpayers,” it said.
“We expect any authority requesting an additional increase to ensure that appropriate support is put in place for vulnerable households, including reviewing the provision in their council tax reduction scheme and their discretionary discount policy for taxpayers in hardship.”
