Is council tax going up? Most areas in England to see 5% rise

2 years ago 43

Housing successful  AylesburyImage source, Reuters

By Andre Rhoden-Paul

BBC News

Most English councils are expected to rise assembly taxation by 5%, according to the Treasury.

Chancellor Jeremy Hunt connected Thursday announced English section authorities volition beryllium capable to summation assembly taxation by 5% annually without a referendum.

Councils warned an summation would beryllium "extremely difficult" for radical fixed the cost-of-living crisis, but 95% are expected to opt for the afloat rise.

Treasury investigation predicted astir each councils would summation payments by the afloat 5% permitted.

It means successful immoderate areas the mean Band D assembly taxation measure could spell implicit £2,000 for the archetypal time, though different areas already wage much than that.

Council taxation pays for section budgets and tin beryllium spent arsenic the section authorization sees fit, according to the House of Commons library.

"It is not imaginable to accidental that assembly taxation pays for peculiar section services: it is pooled with gross from concern rates, authorities grants and different sources of income," the room says.

Currently a referendum is triggered if councils privation to rise assembly taxation by much than 2%, though they tin besides rise it by a further 1% specifically for societal care.

Following the Autumn Statement, section authorities volition beryllium allowed to rise assembly taxation by 3% and those which besides person societal attraction responsibilities tin besides summation it by a further 2 percent (a full summation of 5%) without a section vote.

The Local Government Association (LGA), which represents 331 of the 333 councils successful England, said though the fiscal outlook looks better, assembly taxation would not plug their shortfalls.

LGA president councillor James Jamieson said: "We person been wide that assembly taxation has ne'er been the solution to gathering the semipermanent pressures facing services - peculiarly high-demand services similar big societal care, kid extortion and homelessness prevention.

"It besides raises antithetic amounts of wealth successful antithetic parts of the state unrelated to request and adding to the fiscal load facing households."

Mortgage fears

Councillor Shaun Davies, assembly person for Telford and Wrekin Council and person of LGA Labour, said helium was not consenting to summation assembly taxation due to the fact that his residents tin not spend it, but assumes authorities volition bid section authorities to summation assembly taxation by astatine slightest 2% for the societal attraction levy.

Speaking to the BBC Radio Shropshire, helium described residents telling him astir the terms of nutrient rapidly expanding and homeowners contacting the assembly for lodging proposal due to the fact that they could not spend their mortgage.

He said: "In each consciousness I can't summation assembly taxation astatine a clip erstwhile families are struggling.

"That volition mean pugnacious decisions for america arsenic a council, arsenic a effect of that underfunding from authorities and the debased assembly taxation that we person already.

"But I'm not prepared to enactment onto families and households much taxation arsenic a effect of this budget."

He added the Autumn Statement meant determination would beryllium further cuts to nationalist services astatine clip erstwhile it requires "urgent resuscitation" and the request is "going done the roof".

The County Councils Network, which represents 36 chiefly Conservative authorities, said contempt Mr Hunt's program they inactive look "very hard decisions" alongside precocious ostentation and rising societal attraction costs.

Chairman Tim Oliver said "some region leaders whitethorn beryllium reluctant" to enforce 5% hikes "during a cost-of-living situation considering ratepayers successful region areas presently wage the highest bills connected average".

Councillor Georgia Gould, seat of London Councils, said that borough finances remained successful a "critical condition". She maintained that assembly taxation was "not the answer" and said the emergence made the outgo of surviving situation "extremely hard for struggling households" and "it could ne'er plug that £700m backing gap".

Media caption,

Watch: Chancellor defends the interaction of his Autumn Statement connected "squeezed middle"

Labour's shadiness chancellor Rachel Reeves told BBC News: "If you look astatine what's happening successful March adjacent year, I americium precise disquieted astir a full scope of things that are acceptable to hap astatine the moment.

"Big increases successful state and energy bills, the increases successful assembly tax, the increases successful income and the increases successful substance duty."

The autarkic Office for Budget Responsibility said the government's program volition rise £3.3bn successful 2026/27, rising to £4.8bn successful 2027/28.

The Ministry for Housing, Communities and Local Government (MHCLG) has been approached for comment.

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