Metro

Millions Face Record-Breaking Council Tax Hikes Amid Cost-of-Living Crisis – Some Bills Set to Soar by 25%!”

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Millions of people in England are bracing for major council tax increases as struggling local councils seek to raise more money to fund essential services.

In some areas, householders could see their bills rise significantly, with one council planning a 25% hike the largest increase in two decades. Other councils across the country are proposing increases ranging from 9.99% to 15%, far above the usual limit set by the government. These plans are putting additional financial strain on households already dealing with the rising cost of living.

Under current rules, councils can raise council tax by up to 4.99% without needing approval from residents. However, some councils are using a legal loophole to push through higher increases without holding a referendum. This loophole allows councils to argue financial hardship or the risk of bankruptcy, known as issuing a “Section 114 notice.” If approved by the government, these councils can bypass the usual restrictions and implement steep tax hikes.

The Royal Borough of Windsor and Maidenhead is facing the largest proposed increase, with residents set to pay 25% more. This would add an extra £451 to the average annual bill. Birmingham, England’s second-largest city, is considering a 9.99% rise for the second year in a row, which could see average bills rise by £400 over two years. In Bradford, where the council received £220 million in government aid last year, officials are now proposing a 15% increase, adding £170 to household bills. North Somerset is following a similar path, suggesting a 15% rise while also asking residents to contribute £1,000 voluntarily to help cover a budget shortfall.

Hampshire County Council, which serves 1.4 million residents, is warning of a possible 15% tax hike in the coming years, citing a large financial deficit. Other councils, including Newham, Cheshire East, and Slough, are also planning steep increases. These rising costs have left many residents angry and frustrated, particularly as they face these demands during a cost-of-living crisis.

Critics have accused councils of poor financial management and wasteful spending. Advocacy groups like the TaxPayers’ Alliance argue that taxpayers should not have to shoulder the burden of councils’ financial missteps. Many believe local governments should focus on providing essential services efficiently instead of overspending on unnecessary projects.

Council representatives have defended the proposed increases, stating that local authorities are under severe financial pressure. They claim that council tax alone cannot solve funding problems and argue that the government must provide additional support. Without more funding, councils say they will struggle to maintain critical services such as waste collection, road maintenance, and social care.

The government has emphasized that any council tax increase above 5% will only be approved in exceptional cases. They stress that councils are responsible for managing their budgets and ensuring taxpayers are not unfairly burdened. Despite this, the proposed hikes have sparked widespread concern, with many residents wondering how they will afford the additional costs in an already challenging economic climate.