Personal Finance

£5,000 council tax warning issued to thousands of households


Thousands of households will be slapped with eye-watering £5,000 annual council tax bills from next month as cash-strapped councils push through punishing hikes.

The number of homes facing these charges will nearly quadruple overnight, surging from 1,176 to more than 4,500, while millions more will be forced to pay at least £2,000—despite many living in modest properties.

Meanwhile, hard-working families across the country are being clobbered with increases far above inflation, with some councils exploiting special permissions to hike charges by a staggering 10%.

The average levy imposed on a typical Band D home will rise by £109 to £2,280, according to data published by the Ministry of Housing, Communities and Local Government (MHCLG).

Councils blame the increases on more than a decade of cuts in funding from central government, coupled with a surge in costs to cover social care for the elderly and vulnerable.

Despite the spiraling costs, critics warn that local services are worse than ever, with councils failing to deliver basic amenities while relentlessly reaching into taxpayers’ pockets.

Residents in Birmingham saw Council Tax rise by 10% last year, while the figure will go up by another 7.5% in April. At the same time, they are currently suffering a strike by binmen that has seen piles of rubbish blighting the city’s streets.

Elliot Keck, of the TaxPayers’ Alliance, blasted councils for failing to deliver value for money, saying: “Once again, local authorities have shown an abject failure to drive up standards. Many are simply taking the maximum increase allowed, while services stagnate.”

Among the biggest rises will be in Labour-run Bradford, which has jacked up its rates by 10% and Newham, rising by 9%.

And while central government has set a 5% cap on standard rises, many households will pay far more, thanks to additional charges for police, fire services, and local mayors—none of which are bound by the limit.

The nation’s most expensive council tax bills are once again found in Rutland, where residents will see their average charge soar by £128 to £2,671. Those in Band H homes in the rural county now face a shocking bill of £5,342—the highest in England.

At the other end of the spectrum, Wandsworth remains the only place where council tax is under £1,000, with residents there paying an average of just £998—including a Greater London Authority charge of £490.

Wandsworth is also now the only place where no household will pay more than £2,000, with the top rate set at £1,996.

A government spokesman insisted ministers were working to address local government finances, but warned that councils must prioritise taxpayers’ interests.

“We are under no illusion about the financial difficulties some councils face, but they must act responsibly and put taxpayers first,” said an MHCLG spokesperson.

“That’s why we are maintaining a referendum threshold on council tax rises, so local people can have the final say and be protected from excessive hikes.”



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