Deputy Prime Minister Angela Rayner has agreed to let local councils raise taxes higher than usual. Most councils can increase household taxes by 5%, which is double the current inflation rate of 2.5%.
Some areas, like Windsor and Maidenhead, Bradford, and Newham, can raise taxes even more—up to 9% or 10%. In places like Somerset, Trafford, and Birmingham, taxes could go up by 7.5%. For example, in Bradford, this could mean an extra £170 a year for an average home, plus additional charges for police and fire services.
This is the biggest tax hike allowed without councils needing to ask local residents for permission. Most councils are expected to raise taxes as much as they can.
The Local Government Association says the increase in National Insurance, which affects employers like councils, has also pushed up costs. The government has given some extra money, but councils still face a £1.2 billion shortfall. Some councils, like Windsor and Maidenhead, even asked for a 25% tax hike, but this was not approved.
Angela Rayner explained that the government wants to avoid very high tax increases and protect vulnerable people. She blamed the previous Conservative government for leaving many councils in financial trouble after 14 years of instability. Ellen Eaton, a former council leader, added that the rise in National Insurance will cost local governments around £1.7 billion next year.
In short, council taxes are going up, with some areas seeing big increases. The government says this is needed to fix financial problems left by the previous administration.
