(qlmbusinessnews.com Tues, 30th Jan, 2024) London, UK —
“Council Tax Crisis: £2bn Hike Looms Despite Sunak's Tax Cut Pledges”
As the government gears up for pre-election tax giveaways, households in England are set to be hit with a staggering £2 billion council tax increase this spring. Despite promises of income tax cuts, officials in Michael Gove's department have signaled that the maximum allowable 4.99% rise in council tax is expected in April.
The hike, expected to add around £100 to a typical band D council tax bill, comes amidst a backdrop of financial strain on local councils. The move has drawn criticism from local government leaders and experts, who warn that it will disproportionately affect the poorest households.
While the government has announced additional funding for local government, almost half of the boost is contingent on councils implementing the maximum council tax rise. Critics argue that this places a heavier burden on local taxpayers and could lead to reduced services.
Calls for reform of the council tax system have intensified, with many highlighting its outdated basis on 1991 property valuations. The Northern Powerhouse Partnership has called for changes to address the disparity in tax burdens between affluent and less affluent areas.
Despite the government's stance that councils are responsible for their own finances, the looming council tax hike raises concerns about the impact on households already grappling with rising costs of living.
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