Households face council tax hikes of up to £75 a year on average following measures introduced in Jeremy Hunt’s Autumn Budget 📈
Households face council tax hikes of up to £75 a year on average following measures introduced in Jeremy Hunt’s AutumnNext year, local authorities will be allowed to raise bills by up to 5% without holding a referendum, up from the current ceiling of 3%.
But the independent public finance watchdog expects virtually all councils to take full advantage of the rule change. A typical home in band D would have to pay £98 per year more, bringing average bills in that bracket over £2,000 in many areas.The rise in actual amounts paid may be larger for some people due to the £150 council tax rebate for homes in bands A to D handed out this year as part of the government’s cost-of-living support package.
They include freezes on the threshold at which workers start paying income tax and move up tax brackets, as well as an extension on the current freeze on the main national insurance threshold.This figure is equivalent to nearly a quarter of total spending on adult social care services – one of the main areas of council spending.But with headline inflation currently at 11.1%, this increase alone will not be enough for local authorities to cope with rising costs in the near term.
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