Angela Rayner gives permission for huge above-inflation council tax increases
Reach Daily Express February 04, 2025 05:39 AM

Deputy Prime Minister Angela Rayner has agreed to allow massive above-inflation council tax hikes for local authorities across the country.

Most councils will be allowed to increase the tax paid by households by 5%, double the current 2.5% rate of inflation, but a number will be allowed to charge even more.

Windsor and Maidenhead Borough Council will be allowed a rise of 9%, Bradford Council an increase of 10%, and Newham Council an increase of 9%,

Somerset, Trafford, and Birmingham City councils will be allowed a jump of 7.5%.

It means the charge for a Band D property in Bradford could increase by £170 - in addition to an increase in the amount charged by police and fire authorities, which are added to council tax bills.

The limit set by Ms Rayner is the biggest increase councils are allowed to charge before they are forced to hold a referendum of local voters asking if they agree with the rise. In practice, councils are almost certain to impose the maximum rise possible.

According to the Local Government Association, Chancellor Rachel Reeves's decision to increase National Insurance, which is paid by employers including local authorities, has helped push up bills. The Government has provided them with some extra money to meet the extra cost, but that leaves councils with a £1.2billion shortfall.

Some authorities had asked for permission to impose even bigger tax hikes, with Windsor and Maidenhead telling ministers it wanted a 25% rise.

Ms Rayner said in a statement to Parliament: "This Government has been clear that we intend to take a stricter approach that puts taxpayers at its heart.

"This means avoiding excessively high increases, and only agreeing increases where councils have comparatively low existing levels of tax and plans in place to protect the vulnerable.

"This has limited the number and scale of additional increases. In particular, it has meant Government has not agreed where councils have asked to increase council tax by a very high amount in a single year or by high amounts in successive years."

She blamed the increases on Conservatives, saying: "As a result of the 14 years of decline and instability overseen by the previous government, we know there are large numbers of councils in significant financial difficulty.

"This financial legacy of the previous government has resulted in a record number of councils engaging with the Government about support to help them set their budgets, and a record number of these councils asking for additional council tax increases."

Ellen Eaton, the former leader of Bradford Council who is now vice-president of the Local Government Association, which represents councils across the country, told the House of Lords last week: "With Labour's increase in employer National Insurance contributions, Local Government Association analysis confirms that the cost to local government will be around £1.7billion next year."

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