Millions Face Council Tax Rise Over 5% After Government Green Lights Hikes
Over two million people will see council tax increases of 5% to 10% as six councils get approval for higher rates.
Council Tax, Government, Windsor, Maidenhead, Newham, Bradford, Birmingham, Somerset, Trafford
Windsor: Millions are facing higher council tax bills. The government allowed six councils to raise rates above the usual 5% limit.
More than two million people will see increases between 5% and 10%. Windsor and Maidenhead Council wanted a 25% hike but settled for 9% instead.
Newham Council will also increase by 9%. Bradford Council plans a 10% rise, while Birmingham, Somerset, and Trafford will raise rates by 7.5%.
Health minister Karin Smyth spoke to Sky News. She defended the higher increases, saying many councils needed the extra funds for basic services.
Smyth blamed the previous Conservative government for leaving local councils in a tough spot. She said many councils asked for help but were denied.
How do councils increase tax?
Normally, councils can raise taxes by up to 5%. This includes 3% for core spending and 2% for social care.
If a council is in talks with the government for financial support, it can raise taxes above 5% without a public vote.
Deputy Prime Minister Angela Rayner confirmed this on Monday. She stated the average council tax increase would not exceed last year’s 5.1%.
Rayner also mentioned over £69 billion in central funding would be available, a 6.8% increase from last year. Nearly £4 billion is set aside for social care.
The Conservatives criticized Labour for shifting the tax burden onto residents. They claimed Labour’s policies would force councils to raise taxes.
Shadow communities secretary Kevin Hollinrake said local people would pay more for less. He pointed out that rural areas would lose funding due to Labour’s decisions.
The County Councils Network, representing 37 councils, expressed concerns. They said rising national insurance and minimum wage increases are putting pressure on budgets.
Barry Lewis from the network noted that many councils are in a worse position than before the budget. He warned that service cuts could severely impact residents.
Rayner confirmed £502 million in allocations to help councils cope with rising national insurance costs.