Council tax: households owe billions ahead of bill rise
While the government is proposing a change in the rules over the way unpaid bills are chased, the Treasury is also assuming council tax will rise by 5% a year in the future.Councils can raise council tax by up to this amount, although they can go above this cap if they hold a local referendum or get approval from central government.
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The Sun
22 minutes ago
- The Sun
Keir Starmer paves way for tax hikes this autumn putting damper on interest rate cut
SIR Keir Starmer has paved the way for tax hikes this autumn — putting a damper on today's expected interest rate cut. The Prime Minister failed to explicitly rule out increases to income tax or National Insurance in the Budget to plug a multi-billion-pound black hole. His refusal to reaffirm manifesto commitments comes as experts warn an eye-watering £50billion is needed just to maintain Chancellor Rachel Reeves ' £9.9billion financial buffer. Speaking on a visit to Milton Keynes, Sir Keir said: 'In the autumn, we'll get the full forecast and obviously set out our Budget. 'The focus will be on living standards, so that we will build on what we've done in the first year of this government. 'We've stabilised the economy. "That means interest rates have been cut now four times. "For anybody on a mortgage, that makes a huge difference on a monthly basis to how much they pay.' No10 tried to play down the comments, saying the Government remains committed to its manifesto by not raising taxes on working people. But the National Institute of Economic and Social Research has said the Chancellor is likely to be forced into raising taxes and cutting spending just to meet the massive shortfall. Despite the economic gloom, homeowners are set to receive a boost from the Bank of England today. Experts predict bank chiefs will cut i nterest rates by 0.25 per cent, even though inflation is stubbornly high and growth weak. Raising taxes will kill off growth, Reeves warned as she pledges to rip up business red tape 1 TOWN HALL CASH ALERT ONE in four English town halls will lose money under Labour's shake-up to council funding, experts warn. Areas like inner London face risking cash to go to services, while the East Midlands and Yorkshire are set for the biggest cash windfalls. The Institute for Fiscal Studies, said changes will 'sting' for councils set to lose out. Labour's changes, still being consulted on, are due to come into effect next year.
Daily Mail
25 minutes ago
- Daily Mail
Interest rate hopes send Footsie to a record high as traders shrug off concerns about Trump's India tariffs
The FTSE 100 hit a fresh record yesterday as traders placed bets on another interest rate cut from the Bank of England. The index closed up 0.2 per cent, or 21.58 points, at 9164.31 after a similar record-breaking session on Tuesday when it passed 9142. Traders shrugged off concerns about a trade war between the US and India after Donald Trump announced he would slap a 50 per cent tariff on goods from the South Asian nation in response to its importing of oil from Russia. The FTSE 100 was led higher by insurer Hiscox, which jumped 9.4 per cent, or 119p, to 1379p after it announced it would be increasing its stock buyback plans by £75million. Precious metals miner Fresnillo jumped 8.9 per cent, or 135p, to 1655p following strong results this week. Traders were also pricing in an expected interest rate cut from the Bank of England later today. Market forecasts are predicting the central bank will lower rates by 0.25 per cent to 4 per cent. Rate cuts tend to boost stock markets as they make it easier for firms to borrow and invest, stimulating growth. Lower rates also make it easier for mortgage holders and other borrowers to repay their debts, leaving them with extra cash to spend elsewhere. A rate of 4 per cent would be the lowest in over two years and signal that the decision-makers on the Bank's Monetary Policy Committee believe inflation pressures are starting to ease. But Tom Matterson, investment manager at Saltus, warned 'significant instability remains', highlighting the autumn Budget and turmoil in the global economy.
Daily Mail
25 minutes ago
- Daily Mail
Rate fillip for dismal housing: Reeves must ring the changes to get Britain building, says ALEX BRUMMER
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