Labour has confirmed council tax rises shall be saved on the 5% cap subsequent 12 months, which might imply an increase of £100 for the typical household’s payments.
The prime minister’s press secretary mentioned on Wednesday that the edge by which native authorities can enhance payments would “remain the same”. Hours earlier Keir Starmer had dodged a query from Kemi Badenoch, the Conservative chief, at prime minister’s questions on whether or not he would hold the cap on council tax.
Talking within the Commons, he mentioned MPs “will know what the arrangements are”. In a while Wednesday, his press secretary mentioned: “The threshold remains the same.”
Within the Commons, Badenoch replied: “I think the house would have heard that the prime minister could neither confirm nor deny whether the cap on council tax was being raised.”
A 5% rise could be nearly thrice above present ranges of inflation, which in October fell to 1.7% – the primary time it had been beneath 2% since 2021.
Authorities statistics present the typical band D council tax set by native authorities in England for 2024-25 was £2,171, which represented a rise of £106 or 5.1% on the earlier 12 months. For these in the costliest band H households, final 12 months’s £4,342 invoice will enhance by £217.
Starmer accused the Tories of leaving native authorities in an “absolutely catastrophic state” after Badenoch pressed the prime minister concerning the authorities’s funding plans for cash-strapped councils in England.
The Conservatives cited responses to written parliamentary questions by which ministers mentioned estimated core spending energy (CSP) for native authorities will enhance from £64.7bn in 2024-25 to £68.4 bn in 2025-26, with the occasion including that the funds was not offering sufficient new funding to cowl this.
Ministers have mentioned the CSP is topic to information modifications and remaining figures shall be revealed as a part of the 2025-26 native authorities finance settlement.
Will increase have been capped at 2.99% lately, whereas an additional 2% enhance is permitted for councils with social care duties. Councils are in a position to put up tax charges by as much as 5% however would require authorities permission or a referendum for any greater will increase.
With one in 4 councils saying in a Native Authorities Affiliation survey that they have been “likely” to wish emergency help to stave off chapter within the subsequent two years, will increase in council taxes appear seemingly.
