Council Tax warning as bills could surge ‘to £2,000’ from next year

GB News: Expert discusses potential rise in Council Tax

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Council Tax bills could exceed £2,000 for some families from next year, recent analysis has shown. Local authorities are permitted to increase fees by up to three percent if they so wish. This is the maximum amount which can be increased without having to hold a local referendum, to fund key services.

However, a study from the Daily Mail showed families in half of English districts may receive staggering bills of over £2,000.

Currently, there are only a third of areas which have bills higher than this sum.

At present in England, the average Band D council tax rate is recorded at £1,898 – evidently with some paying less while others pay more.

In this sense, out of the 309 council tax districts, a total of 104 make residents pay more than £2,000 in Band D. 

However, analysis from the newspaper showed that if all councils were to increase their charges by three percent, some 154 districts would be charging above £2,000.

People will usually have to pay Council Tax if they are 18 or over and own or rent their home.

A full bill is based on at least two adults living together in a home, with spouses and partners considered jointly responsible for ensuring payments are met.

Certain individuals will get a 25 percent discount, such as those who live on their own, or if no-one else in the home counts as an adult.

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Similarly, those in receipt of certain benefits could also receive Council Tax Reduction – but this is dependent on circumstances. 

Despite this support, it is feared struggling families could see their pockets hard-hit by any Council Tax increases. 

Areas cited as potentially at risk include Blackpool, Sheffield, Warwick, South Norfolk, Stroud and the Wirral. 

Small print in the Chancellor’s recent Budget has pointed towards the potential for Council Tax increases in the coming years.

The Office for Budget Responsibility (OBR) stated it expects receipts from the tax will be £12.1billion higher in 2026/27 than in 2019/20.

A recent study from the Institute for Fiscal Studies (IFS), asserted that under current Government spending plans, Council Tax increases of 3.6 percent would be necessary for the next three years.

This would be to ensure councils can continue to provide the same range and quality of services in 2024/25 as was provided pre-pandemic.

The analysis stated this would push up the average annual bill paid by households by £160 by 2024/25.

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However, it also warned councils could easily push up the necessary Council Tax rises to five percent per year, or by over £220 by 2024/25. 

Britons may be able to apply for a Council Tax discount if they are eligible, with the Government developing an online tool for this purpose.

Via its official website, all individuals will need to do is enter their postcode to be redirected to their local council’s website.

Here, they will be able to determine whether they are eligible to receive a discount, or help through the Council Tax Support Scheme.

The scheme replaced Council Tax Benefit from April 1, 2013. It is intended to assist people with no or low income to pay their Council Tax bill. 

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