Households could face a significant increase in their council tax bills as part of Chancellor Jeremy Hunt's plans to raise £50 billion to balance public finances. Rules limiting council tax would be scrapped under Hunt's new plans, giving authorities the freedom to impose double-digit rises, the Daily Express reports.
Increasing the bill by the current rate of inflation would add £198 to the average Band D property. The money raised would aim to allow councils to raise more from local taxpayers and freeze or cut funding provided by the central government.
In the past, authorities have had any council tax increases capped by three per cent, with social care limited to just one per cent. It’s one of a series of tough measures under consideration by Mr Hunt and Prime Minister Rishi Sunak, who plan to raise £25 billion from tax increases and £25 billion from spending cuts.
