Prime Minister Rishi Sunak and Chancellor of the Exchequer Jeremy Hunt are preparing for the Autumn Budget on November 17, with council tax predicted to surge past £2,000 for an average household per year, rising to more than £4,000 for some.
They will prepare to let local authorities increase levies by five per cent, to help cover the cost of social care, according to reports.
According to the House of Commons, any authority proposing an excessive increase in council tax must hold a local referendum and obtain a “yes” vote before implementing the increase. The pair will reportedly allow councils to increase levies without the need for local votes.
Such a policy change would break another Conservative manifesto pledge. At the last election, the Tories promised locals would “continue to have the final say” on council tax rises.
The proposals would mean those living in households in Band D could pay up to £100 extra a year, which would take total payments to above £2,000 pa.
Meanwhile, those in Band H households would see bills rise by as much as £200, taking costs to more than £4,000.
The proposed council tax increase will be a blow for many Britons, as the cost of living has increased across the UK since early 2021, with many struggling to pay bills.
Around 7.8 million people in the UK have seen major financial worries up from 5.3 million in 202, with households and businesses suffering.
Covid, Russia’s invasion of Ukraine, and supply chain-related issues are said to be causing the rise of inflation in the UK.
It’s forecast that inflation will rise to around 11 per cent this year, further driving prices higher and making the cost of living even more expensive.