Council tax bills to rise by whopping £380 per year under Angela Rayner's plans
BILL BLOW Council tax bills to rise by whopping £380 per year under Angela Rayner's plans
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COUNCIL tax bills could rise by £380 per year under Angela Rayner's plans to unlock cash for deprived areas.
But the changes mean that households in rural areas could see their council tax rise by between £376 and £380 over the next four years.
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Council tax bills could rise by £380 per year under Angela Rayner's plans to unlock cash for deprived areas.
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Research by the County Councils Network, which represents local authorities in county areas, said families living in band D properties in countryside areas will pay £2,756 annually by 2029.
That is compared to the £2,380 that those in the band group pay today.
It comes as the Deputy Minister has outlined proposals to redistribute government funding to the most disadvantaged local authorities through a new formula.
Under the plans, Rayner wants households in more affluent areas to pay more in council tax to help fund services in poorer parts of the UK.
The government has said the overhaul is required so councils have enough funding to pay for services.
The Deputy Prime Minister launched a consultation on the new funding formula in June.
This closed last week, with changes expected to be introduced from next year.
But to help offset these costs, CCN claimed that councils in country areas would have to increase council tax by the maximum rate of 5% over the next three years.
Research by the group also found that £1.6billion in council tax income from dozens of rural areas would be distributed to other parts of the UK including cities.
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A spokesperson for the ministry of housing, communities and local government, said: 'We do not recognise this analysis.
"The current, outdated way in which local authorities are funded has left communities behind and damaged local services."
They added: "This must change and is why we are taking decisive action as part of our Plan for Change to reform the funding system so we can improve public services, while maintaining the previous government's referendum threshold on council tax rises so taxpayers have the final say and are protected from excessive increases.'
It comes as a report by the Institute for Fiscal Studies (IFS) published in August, said that changes to the the system could leave dozens of councils facing major cash shortfalls.
It warned that these shortfalls would also need to be offset by increases to council tax.
The IFS's report says councils in inner London are set to be "by far" the biggest hit.
Camden, Hammersmith and Fulham, Kensington and Chelsea, Wandsworth and Westminister will see their overall government funding drop by up to 12% in real terms by the 2028/29 financial year, even factoring in a 5% rise in council tax each year.
District councils like Cherwell, Mid Suffolk and North West Leicestershire are set to be negatively impacted as well.
MORE COUNCIL TAX NEWS
Meanwhile, a consultation has also been launched proposing letting households pay for their council tax bill over 12 months rather than 10.
It has also laid out plans to change the way council tax debt is collected.
Under the plans, councils will have to wait longer before demanding a bill is paid in full and the costs charged to households through liability orders will be capped.
A liability order is a demand for payment of council tax issued by a Magistrates' Court.
The Government is also mooting changing the name of the so-called "severe mental impairment" discount.
Under the discount, someone who has been medically certified as having a permanent condition that affects their intelligence and social functioning, can get up to 100% wiped off their bill.
Ministers are also consulting on amending the definition of the discount to encourage take-up.
The consultation is also looking at whether it can be made easier for households to challenge their council tax band.
None of the above plans are yet to have come into force, with the consultation running until September 12.
WHAT IS COUNCIL TAX?
Council tax is an annual fee you pay to your local council to help fund local services. Each council sets its own cost.
The amount of council tax you pay relates to the valuation of your property.
Each property is valued by the Valuation Office Agency (VOA) and placed in one of eight council tax bands, ranging from A to H.
You can find out the council tax band for a home by looking up its address or postcode.
This can be done by visiting gov.uk/council-tax-bands.
If you are on a low income or receiving benefits, you could be eligible for a reduction on your council tax.
You need to apply for a reduction via your local councils website.
To make a claim, will need to provide the council with information on your earnings and what pensions, benefits, allowances and tax credits you receive.
To find where your local council is, visit www.gov.uk/apply-council-tax-reduction.
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