Politics

Starmer REFUSES to guarantee Rachel Reeves won’t cripple Britons by hiking up council tax Cap

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People in the UK are worried that the government might increase council taxes again. This fear comes from the fact that Prime Minister Keir Starmer has not confirmed that he will stop the Chancellor, Rachel Reeves, from allowing such a tax increase.

At the recent Prime Minister’s Questions (PMQ) session, Kemi Badenoch, the leader of the Conservative Party, asked Starmer about the current rules for council tax.

Right now, councils that handle social care, like care homes for the elderly, are allowed to raise council tax by up to 4.99% each year without asking for public approval. Councils without social care responsibilities can raise it by up to 2.99%.

Many councils are likely to take advantage of this rule and raise taxes by the maximum amount next April, according to the County Councils Network. This increase could mean higher bills for many households across the UK.

Badenoch questioned Starmer directly, asking him if he would keep this cap on council tax increases. Starmer avoided a direct answer, only saying that Badenoch “knows what the arrangements are,” which left many people wondering if a tax hike might be coming.

This issue is part of a larger set of financial changes recently introduced by Chancellor Rachel Reeves in her Autumn Budget. Some of the changes, like making pension pots subject to inheritance tax and increasing National Insurance contributions for employers, have been controversial.

The government has also been dealing with pressure to support public services, many of which have been affected by budget cuts in recent years. Many councils are struggling with limited funds and may need more money to provide services, which could lead to these tax increases.