Mapped: The areas where residents face council tax hikes of up to 25%
Mapped: The areas where residents face council tax hikes of up to 25%
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Councils at risk of bankruptcy can apply for tax hikes of more than 5 per cent. More than four million households will face council tax hikes of up to five times the legal limit from April, according to new analysis. In one area, household bills are set to increase by 25 per cent, which would be the largest increase in England for two decades, according to a report by the Daily Mail. Another seven councils have proposed rises of between 10 and 15 per cent from April.
Under current rules, local authorities are not allowed to increase their tax bills by more than 4.99 per cent without the approval of the government. They can request to raise more by threatening to declare bankruptcy if they aren’t able to significantly increase residents’ tax bills.
Councils can also take advantage of a loophole via a Section 114 notice, a report from the council’s finance officer that states the authority cannot operate within its existing budget. Many councils are struggling financially under the growing costs of public services. One in four recently said in a Local Government Association survey that they were “likely” to need emergency support to avoid going bankrupt in the near future.
The map below shows the local authority areas where council tax is expected to rise. Residents of Windsor and Maidenhead, west of London, are facing an increase of up to 25 per cent in their tax bills, the highest of any council area as local authorities launch individual bids to raise their incomes to stave off financial trouble. This is a £451 rise for the area’s 154,000 residents.
