Council Tax Bills to Increase by Over £100 in April Amid Cap Freeze

[Social Media]

 

Families in England are bracing for significant council tax hikes in April, as the government confirms a cap on increases will remain at 5 percent. This move sets the stage for bills to rise substantially, with the average family facing an increase of more than £100—almost three times the current rate of inflation.  

 

Sir Keir Starmer’s press secretary clarified the government’s stance during a briefing on Wednesday, stating that the threshold allowing councils to raise taxes “isn’t changing.” This confirmation follows an exchange in the House of Commons, where Conservative leader Kemi Badenoch pressed Starmer to confirm whether the cap would be altered. Although Starmer avoided directly addressing the question, his press secretary later reiterated, “The threshold remains the same.”  

 

Under the unchanged cap, local authorities can impose a rise of up to 5 percent without requiring a referendum or special government permission. This increase far exceeds the current inflation rate of 1.7 percent. For the average band D property, council tax bills are set to climb to £2,171 for the 2024–25 financial year—an increase of £106 compared to the previous year. Households in the highest band, band H, will see even steeper hikes, with last year’s £4,342 bill rising by £217.  

 

In recent years, council tax increases were limited to 2.99 percent, with an additional 2 percent permitted for councils managing social care responsibilities. However, the ability to raise taxes by up to 5 percent has become critical for many local authorities. A survey by the Local Government Association revealed that one in four councils anticipates needing emergency financial support to avoid bankruptcy within the next two years. Despite this, some councils may hesitate to implement the full increase, given the upcoming local elections in May.  

 

Tim Oliver, leader of Surrey County Council and chairman of the County Councils Network, acknowledged the budget allocation's marginal benefits but emphasized that it falls short of resolving broader financial challenges. “The money does not eradicate councils’ funding gap,” Oliver explained, pointing to rising costs driven by the new minimum wage as an additional strain. “Therefore, councils will have little choice but to raise council tax and still will need to take difficult decisions over services to balance their budgets.”  

 

As local governments grapple with financial pressures and essential services hang in the balance, the decision to freeze the cap on council tax increases underscores the ongoing tension between fiscal responsibility and meeting community needs. For many families, the rising costs represent a growing burden amidst already challenging economic conditions.

 

Based on a report by The Times 2024-11-16

 

 

 

[Chomper Higgot]

The cap has been frozen, so the increase remains at the already in place 5%.

 

Families in England are bracing for the increase which can be up to 5% but is not necessarily 5%. 

 

[Bkk Brian]

"the average family facing an increase of more than £100—almost three times the current rate of inflation."

 

"the ability to raise taxes by up to 5 percent has become critical for many local authorities."

 

Another kick in the teeth for many, at least Starmer was true to his word: "October Budget will be Painful" just how painful ordinary people including those with children of special need just did not anticipate I suspect.

[James105]

5 hours ago, Social Media said:

Although Starmer avoided directly addressing the question, his press secretary later reiterated, “The threshold remains the same.”

 

He is such a weak, cowardly man, an embarrassment to the UK and the position of Prime Minister.   Why does he not answer any questions directly in PMQs?  What is the point of the speaker position if he doesn't insist that direct questions get direct answers?  A petulant child would be more suited to this position than him.  

[soalbundy]

Jesus wept! you mean you have to pay to live in the UK? Surely it should be the other way around. I heard one politician say it was a privilege to be allowed to stay in the UK, I couldn't stop laughing.

[Scott Tracy]

3 hours ago, soalbundy said:

Jesus wept! you mean you have to pay to live in the UK? Surely it should be the other way around. I heard one politician say it was a privilege to be allowed to stay in the UK, I couldn't stop laughing.

Some people get to pay to live in the UK. There are others who get paid to live there.

[Red Forever]

6 hours ago, James105 said:

 

He is such a weak, cowardly man, an embarrassment to the UK and the position of Prime Minister.   Why does he not answer any questions directly in PMQs?  What is the point of the speaker position if he doesn't insist that direct questions get direct answers?  A petulant child would be more suited to this position than him.  

Yeah right, cos we miss the strength, bravery and honesty of disgraced former PM Johnson, Wrecker Truss and Sunak eh?

[Red Forever]

7 hours ago, Bkk Brian said:

"the average family facing an increase of more than £100—almost three times the current rate of inflation."

 

"the ability to raise taxes by up to 5 percent has become critical for many local authorities."

 

Another kick in the teeth for many, at least Starmer was true to his word: "October Budget will be Painful" just how painful ordinary people including those with children of special need just did not anticipate I suspect.

So, the average household of say 4 people each of whom will pay +50p  weekly to maintain local services which the Tories cynically defunded seems to hardly be painful.

I look forward to the coming months when the rich are in the cross hairs.

What's that you say "The millionaire plumber from Pimlico hasn't yet legged it to Dubai"?

[Bkk Brian]

43 minutes ago, Red Forever said:

So, the average household of say 4 people each of whom will pay +50p  weekly to maintain local services which the Tories cynically defunded seems to hardly be painful.

I look forward to the coming months when the rich are in the cross hairs.

What's that you say "The millionaire plumber from Pimlico hasn't yet legged it to Dubai"?

The strawman has appeared now 😅

[Celsius]

13 hours ago, Social Media said:

current inflation rate of 1.7 percent

 

Probably the biggest lie

[soalbundy]

2 hours ago, Red Forever said:

Yeah right, cos we miss the strength, bravery and honesty of disgraced former PM Johnson, Wrecker Truss and Sunak eh?

Like America we get the scum bags we deserve.

[James105]

4 hours ago, Red Forever said:

Yeah right, cos we miss the strength, bravery and honesty of disgraced former PM Johnson, Wrecker Truss and Sunak eh?

 

Starmer is making them all look extremely competent in comparison. I don't recall any of them being too afraid to actually answer the questions directly in PMQs like this coward of a man.  

[cowellandrew]

Some one has to pay for our once monthly bin collection, and roads are in better shape in Laos,

And the funds need to be sent to keep the Ukrainians free!

[raybangkok 22]

13 hours ago, Red Forever said:

So, the average household of say 4 people each of whom will pay +50p  weekly to maintain local services which the Tories cynically defunded seems to hardly be painful.

I look forward to the coming months when the rich are in the cross hairs.

What's that you say "The millionaire plumber from Pimlico hasn't yet legged it to Dubai"?

Is the council Tak per person not per house?

[raybangkok 22]

Just now, raybangkok 22 said:

Is the council Tak per person not per house?

Tax

[baansgr]

10 hours ago, James105 said:

 

Starmer is making them all look extremely competent in comparison. I don't recall any of them being too afraid to actually answer the questions directly in PMQs like this coward of a man.  

You do know sterling has crashed and mortgage rates have increased the past week...when did we see that last time 

[JonnyF]

20 hours ago, soalbundy said:

Jesus wept! you mean you have to pay to live in the UK? Surely it should be the other way around. I heard one politician say it was a privilege to be allowed to stay in the UK, I couldn't stop laughing.

 

Indigenous people have to pay through the nose to live there.

 

Immigrants are paid via social security handouts.

 

Foreign countries are paid via foreign aid and don't even live there.

 

Labour will crash the economy again. It's inevitable. 

[RayC]

2 hours ago, baansgr said:

You do know sterling has crashed and mortgage rates have increased the past week...when did we see that last time 

 

Sterling hasn't "crashed" in the past week. Sterling has fallen significantly against the US dollar, but then so too has every other major currency. Sterling has fluctuated within a normal range against other currencies over the past week. It is a case of the dollar firming not sterling weakening.

 

Mortgage rates have increased because lenders had previously priced in another cut in the base rate drop in December which doesn't now appear likely.

[Nick Carter icp]

17 hours ago, Red Forever said:

So, the average household of say 4 people each of whom will pay +50p  weekly to maintain local services which the Tories cynically defunded seems to hardly be painful.

I look forward to the coming months when the rich are in the cross hairs.

What's that you say "The millionaire plumber from Pimlico hasn't yet legged it to Dubai"?

 

    The rich aren't going to be too concerned about the price rise , its the poor who will suffer from the price rise

[JonnyF]

8 minutes ago, RayC said:

Sterling hasn't "crashed" in the past week. Sterling has fallen significantly against the US dollar, but then so too has every other major currency.

 

The Trump effect.

 

Plus markets working out how dangerous Starmer is. 

[RayC]

37 minutes ago, JonnyF said:

 

Indigenous people have to pay through the nose to live there.

 

Immigrants are paid via social security handouts.

 

Foreign countries are paid via foreign aid and don't even live there.

 

Labour will crash the economy again. It's inevitable. 

 

Indigenous people: Who might they be?  Pure blood descendants of the Celts? The Anglo-Saxons? The Romans? The Vikings? The Normans? Mix of (all) the above? That last one opens up a can of worms.

 

95%+ of immigrants to the UK work. In 2023, the unemployment rate among immigrants was less than that found  among native-born Brits (Source: Migrationobservatory)

 

Foreign aid as a percentage of UK GDP has been declining. Foreign aid often comes with restrictions e.g. having to buy goods from companies within the donor country

 

The UK economy will inevitably crash. An opinion devoid of any facts or analyses.

[RayC]

11 minutes ago, JonnyF said:

 

The Trump effect.

 

Plus markets working out how dangerous Starmer is. 

 

The Trump effect: Probably.

 

The Starmer effect: Unlikely.

[JonnyF]

48 minutes ago, RayC said:

The Starmer effect: Unlikely.

You think 40 billion in tax rises and alienating the US with Lammy's inane and hateful comments towards Trump will stimulate the UK economy?

 

The wealthy will be leaving the UK ASAP. Certainly not investing in it. Maybe leaning towards America.

 

Just watching Trump and Rogan exchanging pleasantries live at the UFC event as we speak. The crowd is ecstatic.

 

America is back. The UK is in the toilet. 

[sungod]

18 hours ago, Red Forever said:

So, the average household of say 4 people each of whom will pay +50p  weekly to maintain local services which the Tories cynically defunded seems to hardly be painful.

I look forward to the coming months when the rich are in the cross hairs.

What's that you say "The millionaire plumber from Pimlico hasn't yet legged it to Dubai"?

Thats right comrade, UK is no longer the place for the hard working, its just not worth it.

 

Just stand with your hand out like everyone else.

 

The true route to prosperity.

[john donson]

illegals has nothing to fear, free hotel rooms, 3 meals and snacks, pocket money, free healthcare...

[RayC]

1 hour ago, JonnyF said:

You think 40 billion in tax rises and alienating the US with Lammy's inane and hateful comments towards Trump will stimulate the UK economy?

 

The wealthy will be leaving the UK ASAP. Certainly not investing in it. Maybe leaning towards America.

 

Just watching Trump and Rogan exchanging pleasantries live at the UFC event as we speak. The crowd is ecstatic.

 

America is back. The UK is in the toilet. 

 

Despite Trump's thin skin, I doubt that Lammy's ill-judged comments will have much effect wrt the US's attitude to the UK. The UK is unimportant to the US, even more so since the foolhardy decision to leave the EU.

 

I think that Labour handled the PR side of things appallingly during the election campaign and the mismanagement of the PR side of things has, if anything, got worse since it was elected: Tax rises were always going to be inevitable. Labour should have been upfront about it and called out the Tories for their actions and promises. For example, I would have preferred Labour to have reversed the unaffordable 2% cut in employee NI contributions which Hunt made prior to the election - what a coincidence, eh? - rather than increase employer NI contributions as they have done.

 

It remains to be seen what state the UK economy will be in 4-years time.

[James105]

1 hour ago, RayC said:

 

Despite Trump's thin skin, I doubt that Lammy's ill-judged comments will have much effect wrt the US's attitude to the UK. The UK is unimportant to the US, even more so since the foolhardy decision to leave the EU.

 

I think that Labour handled the PR side of things appallingly during the election campaign and the mismanagement of the PR side of things has, if anything, got worse since it was elected: Tax rises were always going to be inevitable. Labour should have been upfront about it and called out the Tories for their actions and promises. For example, I would have preferred Labour to have reversed the unaffordable 2% cut in employee NI contributions which Hunt made prior to the election - what a coincidence, eh? - rather than increase employer NI contributions as they have done.

 

It remains to be seen what state the UK economy will be in 4-years time.

 

Things that are unaffordable:

1. Foreign aid

2. Public sector pensions

3. Net zero

4. Labour government

5. A bloated unreformed NHS

6. Debt servicing for the ever increasing borrowing.  

7. Illegal immigrants and low or no skilled legal immigrants

 

Letting working people keep a little bit more of the money that they earn in comparison is peanuts in comparison to the above.  

 

Labour lied before the election and they have done nothing but lie since the election.   They are the definition of a one term government and are despised by the majority now, including the people that voted for them.  

[RayC]

20 hours ago, James105 said:

 

Things that are unaffordable:

1. Foreign aid

2. Public sector pensions

3. Net zero

4. Labour government

5. A bloated unreformed NHS

6. Debt servicing for the ever increasing borrowing.  

7. Illegal immigrants and low or no skilled legal immigrants

 

Letting working people keep a little bit more of the money that they earn in comparison is peanuts in comparison to the above.  

 

Labour lied before the election and they have done nothing but lie since the election.   They are the definition of a one term government and are despised by the majority now, including the people that voted for them.  

 

1. Foreign Aid: We discussed this issue in detail in another thread. Clearly I didn't convince you to change your opinion. I haven't changed mine. There is little point rehashing the same argument. Suffice to say, I think that the foreign aid budget is affordable.

 

2. Public sector pensions: If these are now unaffordable, then the fault lies with the actuaries and/or previous governments and not the current administration. If pension rights are amended for the worse then we risk losing doctors, nurses, teachers, etc.

 

3. Net zero: Can we afford to do nothing?

 

4. Labour government: Labour has been in power for < 6 months and their first budget is less than a month old (!!), so it is far too early to tell what effect Labour's policies will have on the economy: I'm not sure whether you fall into this category, but I find it laughable that some posters who already claim that this Labour government is an economic disaster, also suggest that it is too early to pass judgement on Brexit 8 years after the referendum and nearly 5 years after we formally left the bloc.

 

5. NHS: I agree that the NHS needs reforming. We are having yet another review. I'm skeptical whether this review will have any more success in improving matters than previous ones. At least collectively, those in authority in the NHS  now refrain from suggesting that the NHS is the 'envy of the world'. Unfortunately, that hasn't been the case for decades.

 

6. Debt: The UK national debt at the end of the 23/24 tax year was 97.8% of GDP. It is forecast to reduce to 97% by the end of 25/26. High by traditional standards, but unaffordable? Not unless there is a marked decrease in government revenue and/or an upward movement in interest rates.

 

7a: Illegal immigrants: Agreed. The government should do all that it can to stop their arrival.

 

7b: Low skilled legal immigration: Yet another Brexit 'benefit'. Under EU freedom of movement, cyclical and seasonal jobs e.g. those in the agricultural and hospitality sector were often filled by transient workers from the EU. In effect, the market naturally found its' equilibrium. Post-Brexit the number of transient workers from the EU reduced significantly leading to a shortage of labour. This has been 'solved' by importing labour from further afield. To change this situation, native-born workers will need to fill these posts. The previous Tory governments failed to convince these individuals to do so.

 

By all means, let working people keep more of their money, however, Hunt's 2% cut in NI contributions cost the Exchequer £10bn. Anything but 'peanuts'. There was no economic justification for this cut in rates at the time. It was nothing but an attempt at bribery which ultimately proved to be unsuccessful.

 

Labour was dishonest with its' election promises and has been very 'economical with the truth' since taking office. However, in 4 or 5 years time, it will be judged on the success of its' policies. It is far too soon to declare it a one-term government.

[James105]

19 minutes ago, RayC said:

By all means, let working people keep more of their money, however, Hunt's 2% cut in NI contributions cost the Exchequer £10bn. Anything but 'peanuts'. There was no economic justification for this cut in rates at the time. It was nothing but an attempt at bribery which ultimately proved to be unsuccessful.

 

Letting people keep more of the money that they work hard for and earn instead of going into the wasteful government pockets is bribery now?  That is an interesting take.   

 

20 minutes ago, RayC said:

Labour was dishonest with its' election promises and has been very 'economical with the truth' since taking office

 

This is the beginnings of voter regret.   You are on the pathway to joining millions of others who voted for or support Labour and have come to see the error of their ways.  

 

25 minutes ago, RayC said:

3. Net zero: Can we afford to do nothing?

 

Considering that doing nothing is going to have the same impact on the climate as going back to the dark ages and living in mud huts, then yes, I'd say we can afford to do nothing.  Paying extortionate amounts to import expensive oil and gas from far away so the UK achieves 'Net zero', whilst already having the highest energy costs in the world, and whilst every fossil fuel producing country reaps the benefits of this folly is utter madness.   

[RayC]

17 minutes ago, James105 said:

 

Letting people keep more of the money that they work hard for and earn instead of going into the wasteful government pockets is bribery now?  That is an interesting take. 

 

Nice - but failed - attempt to twist my words.

 

The timing of the cut in NI contributions was an election bribe. Nothing more, nothing less.

 

What happened to your concerns about affordability? If the government can't afford to spend money on services, then  it can't afford a cut in revenue.

 

17 minutes ago, James105 said:

 

This is the beginnings of voter regret.   You are on the pathway to joining millions of others who voted for or support Labour and have come to see the error of their ways.  

 

That may happen in time but at the moment 'No, it isn't', and and 'No, it's not'.

 

Although I'll admit to disappointment at the start which Labour has made, unlike you I will let a reasonable amount of time elapse before I pass final judgement on it. Another reason for hoping that Labour can 'come good' is that the alternatives don't bear thinking about. Under Badenoch or Farage, we wouldn't just be a physical island.

 

17 minutes ago, James105 said:

 

Considering that doing nothing is going to have the same impact on the climate as going back to the dark ages and living in mud huts, then yes, I'd say we can afford to do nothing.  Paying extortionate amounts to import expensive oil and gas from far away so the UK achieves 'Net zero', whilst already having the highest energy costs in the world, and whilst every fossil fuel producing country reaps the benefits of this folly is utter madness.   

 

Being less reliant on imported energy seems like a sensible strategic objective. However, why would that preclude also adopting strategies which are more environmentally friendly?