Millions of households across the UK risk seeing a dramatic increase in their council tax from April.
It is understood that roughly three-quarters of councils across the council will hike their taxes by 5 per cent. An official analysis recently showed that nearly all local authorities were expected to hike their council taxes by the maximum amount without a referendum as part of Jeremy Hunt's plans to raise money.
Treasury analysis in November showed around 95 per cent of councils are expected to hike payments by the full 5 per cent permitted. Currently, authorities have to hold a local referendum if they want to increase council tax by more than 3 per cent, however, Mr Hunt previously announced in his autumn statement that this threshold will be increased to 5 per cent.
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Similar research by the County Councils Network (CCN) found that 84 out of 114 councils that provide social care and have published their 2023/24 budget proposals plan to raise council tax to the maximum permitted. The Labour vice-chair of CCN, and leader of Cheshire East Council, Sam Corcoran, said: "With inflation reaching levels not seen for over 40 years and with demand-led pressures for care services showing no sign of abating, local authority leaders are setting their budgets in the most difficult circumstances in decades."
But what will this increase mean for you? We've broken down everything you need to know about the upcoming council tax hikes and how you may be able to mitigate some of its effects.
How much more council tax will you pay from April?
Understanding your current council tax rates and how much they may increase by is vital to organising your finances ahead of time. If your council is one among many raising their taxes by 4.99 per cent, then your council tax payments will go up by 4.99 per cent.
For Band D property, it is understood that this will add roughly an extra £100 a year to your council tax obligations, providing you do not receive any discounts. The average council tax for a Band D property in England for 2022/23 was £1,966 which means the maximum increase proposed will add £98 for an average household from April.
How can you find out if your local council will raise taxes this April?
While most councils are expected to raise their taxes by the maximum amount of 4.99 per cent this April, you may find yourself lucky enough to live in an area where this won't be the case. You can find out who your local council are by visiting the government website and entering in your postcode where a link to your local council's website will be provided.
If your local council has not divulged any information on council tax on their website, they will at least provide their contact information which you can use to ask whether they plan to raise their taxes by the maximum amount.
What if you are worried you won't be able to afford your council tax once it increases
During a cost of living crisis, it is understandable that many households will have a lot of financial anxiety around affording their council tax. Fortunately, there is a range of discounts and grants available for select households which can help drive down costs.
Different councils may offer their own form of discounts depending on your unique circumstances, such as if you receive certain benefits or suffer from a long-term medical condition. To find out what discounts your council has available, visit the government website here and enter in your postcode, you will then be provided a direct link to your council's information on Council Tax support.
If you feel that you would struggle to apply for council tax support on your own, you can head on over to Citizens Advice which provides free support and guidance for claiming reductions on your council tax.
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