15-05-2025
The parish councils fleecing residents of £850m
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Parish councils have launched an £858m stealth tax raid which has pushed up residents' bills by as much as 3,000pc, Telegraph analysis shows.
Households in a third of local authorities have seen their council tax bills rise above the legal cap thanks to exorbitant increases to the town and parish council precept.
Town halls are only allowed to raise council tax by 4.99pc each year or they must seek permission from central government.
But a loophole means there is no limit on how much parish councils can increase their precept.
In the Bedfordshire village of Aspley Guise, the parish council passed on a 2,792pc tax rise which came into effect in April. For a Band D property in the area, the precept has jumped from £3.73 in 2024 to £105.52 this year.
Council officials said the rise reflected a return to normal levels after the precept fell dramatically from £90.74 in 2023. At the time, the authority had built up big cash reserves.
In Welford-on-Avon, Warwickshire, the council passed on a five-fold increase, raising rates from £43.02 to £212.80.
Residents in Elmton and Creswell, Derbyshire, pay the highest precepts in Britain. The average Band D household pays £557.10 a year, up by 67pc from £332.95 in 2024.
An independent report this year found the council had been driven to effective bankruptcy after allowing its debts to spiral to £3m despite having just £360,000 in its accounts.
A spokesman said: 'Elmton with Creswell Parish Council acknowledges that the precept increase represents a significant change. This decision was not made lightly.
'However, it was a necessary and responsible course of action taken to secure the long-term financial stability of the Council and protect vital services for our community.'
In Wennington, Lancashire, the precept rose from £237.93 to £441.20 for Band D households. Similarly, in Bridgwater, Somerset, the charge increased from £295.33 to £411.06.
Bridgwater Town Council defended the rise saying it had 'successfully taking on key services devolved from Somerset Council after they declared a financial emergency'.
John O'Connell, chief executive of the TaxPayers' Alliance said:'Taxpayers are being stung by soaring council tax bills, with some parish councils hiking charges far beyond what most would consider reasonable.
'These hikes are slipping through the net with little scrutiny, pushing up costs for residents already feeling the squeeze.
'Ministers must ensure all layers of local government are held to account and that these loopholes are closed.'
Parish councils are the first tier of local government and are usually involved in running community services such as leisure centres, bus shelters and allotments.
There are more than 8,000 parish and town councils in England and almost 100,000 councillors serving in these councils.
Seven out of 10 parish and town councils increased their precept this year, meaning households in 32pc of councils oversaw average bill rises above 5pc when including their parish or town council tax.
This figure excludes the six councils that were granted permission to raise council tax above 5pc due to exceptional circumstances.
Due to their limited budget and therefore small sum paid by residents, there is no cap in place for how much parish and town councils can raise their tax each year.
However, in recent years, these authorities have quietly assumed more responsibilities as debt-ravaged district councils have passed on basic duties they claim can no longer afford to fund.
Town and parish councils raised taxes by 7.4pc this year, following an 8.5pc increase last year. They are forecast to collect a record £858m from taxpayers in 2025-26, more than double what these authorities levied a decade ago.
Kevin Morton, a retiree from Yeovil, saw his parish council tax increase by 25pc this year to £501.70. It comes after a 90pc increase last year, meaning in the space of two years, his parish council tax has jumped from a little more than £200 to £500.
In the same period, Yeovil town council's budget ballooned from £1.3m to £3.3m as it absorbed facilities previously managed by Somerset council, including Yeovil Country Park and the Westlands Entertainment Venue.
Mr Morton said: 'This is unbelievable. It's gone up 150pc in two years. When I saw this year's bill, I fell off my chair. I thought last year was a one-off, but now I fear this could happen every year.
'These rises are now baked in so my extra £300 from the last two rises, that's in, that's a fixed sum. I'm going to be paying an extra £300 a year forever, and then it's a case of what happens next year.'
Mr Morton was particularly angry that the parish council had been forced to take on services from Somerset council that were for the use and benefit of all residents across the county.
He said: 'People come to use the theatre who are not from Yeovil town, they are coming from all over the place. It's like asking the people of Wembley Central to pay for the national football stadium.'
Faye Purbrick, a Conservative councillor on Somerset council, said the action amounted to a 'cost shunt'.
She said: 'The unitary council [Somerset council] has not done a good job since it was formed in 2022, and they are cost-shunting particularly to the town councils.
'The way legislation stands, the parishes are not restricted by what they can raise. When I sat as a parish councillor many years ago I argued constantly for restraint, but if we continue to see extortionate figures, that might get looked at.'
Ms Purbrick also suggested there was a conflict of interest because local councillors often also sit on their parish council. In Yeovil, seven of the town councillors, including the leader, are also Somerset councillors. They are all members of the Liberal Democrats.
Bill Revans, leader of Somerset Council said: 'Devolution of services has been an essential part of Somerset Council's approach to addressing our financial emergency which has been caused by the rising cost of social care, a failure by government to bring forward the promised Fair Cost of Care policy, alongside the decision to dramatically reduce funding for local authorities.
'All of the city, town or parish councils that have agreed devolution deals have done so in partnership and voluntarily. Residents in Somerset still pay less for council tax than the national unitary average – and less than in neighbouring councils like Wiltshire and Dorset.'
A spokesman for the Department for Housing, Communities and Local Government said: 'We have maintained the previous government's policy of not setting principles for parish and town council precepts, but we are clear these councils should mitigate the need for increases and we will continue to review this position each year.
'While it is for local authorities to decide on their own council tax levels, they should act in the best interests of their residents and ensure any council tax increase is justified.'
