Chancellor Jeremy Hunt is making headlines again. Last month, two major changes he made were set to have a massive impact on the incomes of UK residents. This month, he’s dealing with council tax. According to reports, council tax is set to rise by up to £120 a year for the average family home. This comes as many households are struggling to cope with the increased cost of living, especially in the colder months.
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Hunt is facing criticism over this move, considering he is expected to make other changes in his Autumn Statement that benefit the rich in Britain’s society. One of his biggest opponents, The TaxPayers’ Alliance, has voiced their concerns about how the move will impact vulnerable households. Here’s what the council tax changes are and who they will affect.
The council tax changes
The Treasury is going to allow local authorities to increase their bills by up to 5%. This will come into place from April 2024. This change will mean the vast majority of local authorities will charge over £2,000 council tax for a typical Band D home in 2024-25.
As The Telegraph points out:
Last year, Rutland Council charged its Band D households the highest amount in the country – £2,365.56.
If the council and its police and fire authorities put up bills by the maximum allowed amount, that bill would go up to £2,486.21 – an increase of more than £120.
This comes as Hunt is expected to cut inheritance tax in half for the UK’s richest residents, according to reports.
Who this change will impact
This change means that households in the highest band of council tax - in Rutland - will pay approximately £240 more than they did the previous year. But other areas will also, of course, be affected:
Dozens of other areas will see their bills increase by £100 or £110.
The TaxPayers’ Alliance, ‘Britain's independent, grassroots campaign for lower taxes’, is fiercely against this move. Media Campaign Manager Conor Holohan warns that:
This news will heap misery on struggling households.
On top of the tax burden already reaching a 70-year high, taxpayers are now staring down the barrel of inflation-busting local rate rises. Town hall bosses should slash local waste and stop council tax rises.
Local authorities will not decide how much to increase council tax by until the new year. However, in recent times, most have chosen to increase it by the maximum amount.
The Telegraph: Council tax to rise by £120 a year for average family home
The Independent: Average family ‘could see council tax rise by £120 a year’