Families in half of English districts look set to receive council tax bills exceeding £2,000 next April, analysis revealed yesterday.
Only a third have bills that are higher than this at the moment.
This shocking increase, discovered through a Daily Mail study will only add to the pressure on hardworking families.
It comes after a think tank warned that millions of middle earners will be left worse off thanks to Rishi Sunak’s decision to put up taxes amid a squeeze on living costs.
This week, the Chancellor announced town halls will be allowed to raise bills by 3 percent next year in order to fund priorities like social care.
Families in half of English districts look set to receive council tax bills exceeding £2,000 next April, analysis revealed yesterday
This week, the Chancellor announced town halls will be allowed to raise bills by 3% next fiscal year in order to fund priorities like social care.
Blackpool Council’s Band D rate this year was £1,998 – meaning it is certain to go over the £2,000 threshold next year
The average Band D council tax bill this year was £1,898, with wide variations between local authorities in how much homeowners are charged.
At present, a total of 104 out of the 309 council tax districts – around a third – present families with Band D bills exceeding £2,000.
However, if the councils increase the maximum allowed rise, it could be increased by 50. It would mean 154 out of 309 of districts – around a half – will be charging in excess of £2,000.
For example, Blackpool Council’s Band D rate this year was £1,998 – meaning it is certain to go over the £2,000 threshold next year.
Cheshire West and Chester Council are also affected. Sheffield and Warwick are not far behind, on £1,996. Arun in West Sussex is next on £1,995, followed by South Norfolk on £1,994.
It comes after a think tank warned that millions of middle earners will be left worse off thanks to Rishi Sunak’s decision to put up taxes amid a squeeze on living costs
Harry Fone, grassroots campaign manager at the TaxPayers’ Alliance, said: ‘Over the last 20 years council tax bills have skyrocketed and taxpayers are rightly fed up.
Local authorities claim they have no option but to hike up bills but every year they waste huge sums of money that could have gone towards essential frontline services.’
Council tax bills contain charges from a range authorities, including county, unitary, and district councils as well as police and fire agencies.
The Treasury announced this week that councils could raise their bills by 2% without the need for a local referendum.
In addition, councils with responsibility for social care – that is county councils and unitaries – can add a further 1 per cent.
According to the Institute of Fiscal Studies (IFS), this means that on average, councils can raise their bills by 2.8%
It means that if any council charging more than £1,946 this year adds 2.8 per cent to their Band D bill, it will exceed £2,000 next time.
Last year council tax bills rose by 4.4 per cent to an average of £1,898. This was on top of the 3.9% increase in council tax bills from the previous year.
The highest bills are in Nottingham (£2,226), followed by Dorset (£2,223) and Rutland (£2,195).
On Wednesday the government’s own economic forecasters The Office for Budget Responsibility warned households face paying around £435 extra in council tax by 2026.
Meanwhile, the IfS warned: ‘Bigger council tax rises than the Government plans to allow could be necessary to maintain services.’