Prime Minister Keir Starmer has refused to rule out a potential council tax raid from Chancellor Rachel Reeves in a worrying sign for Britons.
During Prime Minster’s Questions (PMQ), Starmer was asked by Conservative Party leader Kemi Badenoch MP about the current cap on the levy.
As it stands, councils with social care duties are able to increase the tax annually by up to 4.99 per cent, without triggering a referendum. Other local authorities can raise the rate paid on council tax by up to 2.99 per cent.
According to the County Councils Network, three-quarters of councils were forecast to hike tax bills by the maximum increase in April 2024.
Addressing Starmer, Badenoch asked: “Will the Prime Minister confirm if he will keep the cap on council tax?”
In response, the Prime Minister said: “On the question of councils, she knows what the arrangements are.”
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The Prime Minister refused to guarantee Britons won’t be hit by council tax raid
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Replying to his answer, Badenoch stated: “I think the House will have heard that the Prime Minister could neither confirm nor deny whether the cap on council tax was being raised.”
This failure to rule out changes to council tax comes amid recent fiscal reforms rolled out by Reeves during her Autumn Budget last month.
Among the controversial changes announced by the Chancellor included making pension pots liable for inheritance tax (IHT).
Furthermore, Reeves confirmed National Insurance contributions paid by employers will be raised going forward.
As well as slamming his stance on council tax, the Tory’s new leader took aim at these policy changes and the impact on households.
According to Badenoch, Starmer’s visit Cop29 climate change summit in Baku make life “more expensive for everyone back home”.
The Government is under pressure to address the impact of austerity on public services since returning to power but has faced a roadblock due to underfunded councils.
Recently, Labour was urged to double council tax to assist in helping local authorities reach the Government’s desired housing targets.
How much someone pays in the levy is dependent on the valuation band for their home in England and Wales or Scotland.
Furthermore, councils charge different rates depending on the band.
On top of this, how much people pay can be brought down if they are eligible for a council tax reduction.
Any changes to council tax are often implemented in April of the following year.
