UK households in council tax band D set to wake up to £109 hike within weeks

Council tax bills are set to shoot up by over £100 in just months under the new Labour Party government. Across England, the average band D council tax bill stands at £2,171 and local authorities will be able to increase the band D levy by up to £109 next year.

As it stands, councils with social care duties are able to increase the tax annually by up to 4.99 per cent without triggering a referendum. Other local authorities can raise the rate paid on council tax by up to 2.99 per cent.

Addressing Sir Keir Starmer in the Commons as PMQs on Wednesday (November 13), Conservative Party leader Kemi Badenoch asked: "Will the Prime Minister confirm if he will keep the cap on council tax?" In response, the Prime Minister said: "On the question of councils, she knows what the arrangements are."

READ MORE: UK households will see £250 Cost of Living payments land in bank account within 14 days

READ MORE: State pensioners warned £130 will be 'taken from their monthly payments'

READ MORE Mechanic issues warning to drivers who have 15,000 miles clocked up on car

Ms Badenoch stated: "I think the House will have heard that the Prime Minister could neither confirm nor deny whether the cap on council tax was being raised." Sir Keir said Mrs Badenoch "wants all the benefits" of the Budget but will not say how she would pay for it, before later accusing the Opposition leader of asking "fantasy questions".

The Conservatives cited responses to written parliamentary questions in which ministers said estimated core spending power (CSP) for local government will increase from £64.7 billion in 2024/25 to £68.4 billion in 2025/26, with the party adding the Budget was not providing enough new funding to cover this.

Ministers have said the CSP is subject to data changes and final figures will be published as part of the 2025-26 local government finance settlement. Mrs Badenoch accused the Government of having "fiddled the fiscal rules" before highlighting how the rise in employers' national insurance would be a "disaster" for small businesses.

The Opposition leader later said: "Their ideological Budget was designed to milk the private sector and hope nobody would notice."