Warning people could pay hundreds extra amid major council tax hike

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Warning people could pay hundreds extra amid major council tax hike
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Warning people could pay hundreds more in council tax as major hike set for next year

People are being warned that their council tax bills could rise by hundreds of pounds next year after chancellor Jeremy Hunt announced a major change in his Autumn Budget.

The move is set to cost households £3.3 billion in 2026/27, rising to £4.8 billion in 2027/28, and the Office for Budget Responsibility says it will increase the average Band D bill by around £250 in 2027/28. Georgia Gould, the chair of London Councils, said borough finances “remain in a critical condition”, estimating the capital’s councils had a £700 million shortfall for next year before the chancellor’s statement. “Council tax is not the answer to the inadequate funding we’re grappling with," she said. "Council tax rises during a cost-of-living crisis are extremely difficult for the struggling households we’re determined to support.

The chancellor told MPs as he delivered his statement today that he was having to make difficult decisions to ensure a “shallower downturn”. Despite his measures, the economy is still expected to shrink 1.4 per cent in 2023, OBR forecasts reveal.

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