Is council tax fit for purpose anymore? Have your say!
Millions of households across England are bracing for council tax hikes that will surpass existing maximum limits this year. In a fresh announcement on Monday, it was revealed that six councils have been granted the go-ahead to increase their council tax beyond the standard 4.9% come April 2025.
Is council tax fit for purpose anymore? Have your say! Join in the conversation.
Deputy Prime Minister Angela Rayner stressed the necessity of this decision as a lifeline for financially beleaguered councils struggling after 14 years under Conservative rule. Delivering a written speech to the Commons, Ms. Rayner acknowledged the government's recognition of the "under no illusions about the fragile state" of the local authority landscape.
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She further asserted: "For too long, councils have seen budgets cut and forced to turn to excessive tax rises to continue to deliver vital frontline services."
English councils currently face a cap that permits them to raise council tax by up to 4.9% to plug fiscal shortfalls. Surpassing this threshold requires them to gain approval from local residents via a referendum.
Yet, Rayner disclosed that an exemption will be made for six councils - namely Windsor and Maidenhead, Birmingham, Bradford, Newham, Somerset and Trafford - enabling them to implement steeper tax increases. According to a report by the Mirror, Bradford is gearing up for a rise close to 10%, while Newham in east London anticipates around a 9% hike in council tax.
In Windsor and Maidenhead, the government turned down a plea for an overall 25% increase in council tax, instead sanctioning a rise of 9%. Birmingham, Trafford, and Somerset councils have been granted permission for a 7.5% hike.
Ms Rayner remarked: "These are difficult decisions that government has not taken lightly. We recognise the importance of limited increases in helping to prevent these councils falling further into financial distress but we have been clear this must be balanced with the interests of taxpayers."
She added: "We have agreed to a limited number of requests and in all cases have not agreed to the full amount requested. Where we have agreed, it is only for councils with amongst the lowest levels of council tax, and where we expect, even after these increases, residents will still be paying less than the average compared with similar councils."
"At a national level, even with these increases, the overall increase in council tax is not expected to exceed last year's."
Furthermore, the statement has confirmed that the funding for councils this year will surpass £69 billiona cash term increase of 6.8% compared to the previous years figures.
Is council tax fit for purpose anymore? Have your say! Join in the conversation.