Council Tax Set to Rise by Up to 5% Across England
Local authorities face significant financial pressures as they prepare to increase council tax rates, potentially raising an additional £1.8 billion next year.
- Councils in England are expected to raise council tax by the maximum 5% allowed without a referendum, adding an average of £109 to Band D bills.
- The increase aims to address financial strains on local authorities, with many facing potential bankruptcy without additional funding.
- Critics highlight the disparity in council tax burdens, with wealthier areas often paying less than poorer regions despite higher property values.
- Labour has maintained the 5% cap on council tax rises, with potential changes to tax bands and property revaluation being considered but not confirmed.
- The government disputes claims of a £2.4 billion funding shortfall, citing additional revenues from business rates and new housing developments.