UK households in council tax band D could have bills 'frozen' at £2,171

Campaigners are calling for the Labour Party government to consider a "freeze" on future hikes to council tax. Data published by the Ministry of Housing, Communities &Local Government found that outstanding council tax arrears have reached a total of £6billion as of March 31.

This represents a nine perc cent year-on-year rise and an 71 per cent increase since before the pandemic. In the 2019-20 tax year, the total outstanding arrears stood at £3.5billion - with the new Labour Party government urged to intervene.

Average council tax bills across England rose to more than £2,000 a year for the first time in April 2023 and continued to rise in April 2024. The average charge for a Band D property is now £2,171 for the 2024-25 tax year – an increase of £106 or 5.1% rise.

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The 2024/25 council tax rates that came in on 1 April, mean that those living in band D properties in those areas are now paying more than £2,543 a year on average. While those living in Band D properties in Wandsworth, where house prices are among the highest in the UK, are paying the least amount of council tax at an average of £961 a year.

Benjamin Elks, grassroots development manager at the TaxPayers' Alliance, broke down why a "freeze" on council tax is needed. He explained: "Local taxpayers will be outraged to see that they’re handing over more and more while basic services continue to crumble.

"As household budgets are squeezed, local authorities squander cash on pet projects, pointless non-jobs, and risky property speculation, all the while leaving residents with the bill. "Councils should crackdown on waste and freeze council tax, giving some relief to hard-working local taxpayers.”

Under council tax rules, you can ask to spread the cost over 12 months, if you think that reducing the amount paid each time would make life easier for you.