Following Keir Starmer’s announcement that the cap will be 5 percent, families are preparing for further shocking increases in council taxes next year.
After Downing Street confirmed the ceiling, local governments would have the authority to raise prices by almost three times the existing inflation rate.
The average Band D property in England might rise by £110 due to that. It will be greater in financial terms in certain places, though.
The news is devastating for British citizens who have already been hit hard by the budget’s large tax raid and are already dealing with the cost of living issue.
A government source said the 5 percent cap would not necessarily translate into a similar tax rise, as it would be ‘up to individual councils’ to decide what to charge.
However, the majority are anticipated to raise bills by the greatest amount.
Government statistics show the average band D council tax set by local authorities in England for 2024/25 was £2,171, which represented an increase of £106 or 5.1 percent on the previous year.
The main inflation figure fell to 1.7 percent in September, although it is expected to rise again towards the end of this year as energy costs go up over the winter.
Tory leader Kemi Badenoch warned at PMQs that the national insurance hike in the budget would drive up costs for town halls in areas such as care services.
The party claimed there is a £2.4 billion black hole in the finances for local government that would need to be filled with higher taxes.
The party has calculated that would amount to a 6.6 percent rise across the board, roughly £143 extra on a Band D property.
Instead of approving yet another round of bill increases, Taxpayers’ Alliance member Darwin Friend asked politicians to reduce council waste.
‘Taxpayers will be bracing for another penny-pinching year ahead,’ he said.
‘Councils across the UK have either increased council tax or threatened to increase it. While the cap has not been scrapped, the increase of 5 percent will still hit hard-pressed households.
‘The Government needs to crack down on councils to ensure that they are keeping costs to a minimum and delivering front-line services at the best possible value for residents.’
Labour voiced a scathing complaint in opposition over the impact of growing council tax bills on living expenses.
Ms Reeves stated before the local elections last year that she would freeze council tax prices using £2.7 billion from a new windfall tax on the oil and gas sector.
At the time, she said: ‘While the Tories think the cost-of-living crisis is all over, Labour is on the side of working people.’
We may not worry too much if councils were cost-effective, but the majority of councils are trapped in a bygone era and continue to make the same expensive mistakes year after year.
Has there ever been a tax that is less cost-effective than council tax? In addition to inflation-busting wage increases, most people spend hundreds of pounds a year to have their garbage removed, while work-shy pen pushers enjoy golden pensions and golden pay cheques.
Of course, our taxes supposedly go on other things, i.e., social care, but do we really know where our money is going and what it’s actually being used for, like war and genocide?
I’m guessing it goes to Starmer and his friends and into hotels in your area. After all, that’s what the true meaning of ‘social care’ means these days.
Labour! The gift that keeps on giving.
This is a big problem for all of us, and there’s no opt-out charge unless, of course, we go homeless. We can complain about it till we are blue in the face, but it won’t make any difference unless, of course, everybody in the country stops paying it. What’s the worst they can do, put us all in prison? Oh yes, I forgot, not enough room at the inn!
THE MONTHLY MOSQUITO 