A new analysis reveals that if local governments raise tax rates without consultation, council tax claims could rise by up to £ 100 per household per month.
The Budget Responsibility Office (OBR) announced that Congress will raise taxes by £ 1.8 billion next month. The government allowed them to introduce hiking Up to 5 percent.
The stealth move could ultimately lead to a total increase in invoices of £ 7.5bn by 2025-26. Report the telegraph.
In November, he said that the small print buried in the Prime Minister’s spending review was an announcement that the Treasury had allowed Congress to raise taxes as needed.
Authorities can usually raise local taxes by up to 2 percent without a referendum with the locals.
However, the OBR now estimates that about two-thirds of Congress will raise taxes to a new maximum of 4.99 percent.
This has been reported to mean an increase of £ 50 to £ 100 in Band D properties.
The OBR said the decision meant that the council tax would need to more than double its estimate of £ 800 million from 2021 to 22 to an incredible £ 1.8 billion.
“This is explained by a government decision to allow Congress to raise Congress’s tax rate by up to 5%, instead of the 2% expected in the March 2020 forecast,” OBR said on a budget date. Stated in the report.
With this increase, the total council tax burden in 2021/22 will be £ 39.9bn and will increase to £ 45.6bn by 2025/26.
Tax campaigners fear that the council’s tax hike will have a far greater impact than others.
Andrew Dixon, founder of the Fairer Share Campaign for Property Tax Reform, told The Telegraph:
“There is no doubt that voters will sit awkwardly, inspired by the Conservative fairness and upgrades. When the Prime Minister submitted his budget, the Council Tax was an elephant in the room.
“He has set up a support package for those who have been hit hard by Covid-19, but for millions of humble and low-income households facing the Council Tax bill, such a rest is There was not.”
The local government association also acknowledged that the increase would impose a “burden” on some families.
Congress is keenly aware of the heavy burden on some households and is facing a tough choice as to whether to increase the bill to invest the urgently needed money to protect services.
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“The Council’s tax increases, especially the lessons of adult social care, have not been a solution to the long-term pressures the Council faces, especially in social care that is in desperate need of reform.
“Further action is urgently needed to immediately strengthen social care services at the forefront of the pandemic and secure a long-term future for care and support.
“The government must urgently submit the proposal.”
Stealth Council raid tax can increase billing by up to £ 100 per household per month
SourceStealth Council raid tax can increase billing by up to £ 100 per household per month