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Council Tax Bills May Grow By 5% For Millions of Struggling UK Households From April, Research Warns

© AFP 2023 / DANIEL LEALLocal councils provide hundreds of services, such as rubbish and waste collection and disposal. A waste collector picks up garbage bags from the Royal Borough of Kensington and Chelsea in London on March 20, 2015.
Local councils provide hundreds of services, such as rubbish and waste collection and disposal. A waste collector picks up garbage bags from the Royal Borough of Kensington and Chelsea in London on March 20, 2015.  - Sputnik International, 1920, 14.02.2023
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As millions of UK households struggle with the bitter cost of living crisis, while energy and food costs surge, Chancellor Jeremy Hunt revealed in the Autumn Budget last year that local authorities would be granted "additional flexibility" to raise council tax by up to 3 percent, and up to 2 percent to fund social care needs.
Millions of people across the UK will face a dent in household budgets from April 2023, according to research by the County Councils Network (CCN), cited by media outlets.
At least three-quarters of the country's councils that offer their communities social care duties are planning a 5 percent tax rise - the maximum by which they can raise bills without a referendum. The cap on raising bills above 3 percent had been eased by the country's Chancellor Jeremy Hunt in last year's Autumn Statement which allowed local authorities - such as town, county and city halls - to increase taxes by up to 5 percent without local residents voting on the issue.
Now, County Councils Network has discovered that 84 out of 114 local authorities who offer social care services and who have published their 2023/34 budget proposals have every intention of avail themselves of this opportunity to lift council tax. with all 84 reportedly proposing a 5 percent rise.
If the councils go through with these plans, it could add an annual £100 to bills for average Band D properties, the research warned. At present, average council tax bills for such properties are at £1,966. From April, these bills could increase by £99 to £2,065, although this amount varies across the UK.
The hike would come against the backdrop of soaring inflation which is at 40-year highs and a relentless cost of living crunch.
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What is Council Tax?

Local authorities in the UK provide a number of day-to-day services to those living in the community, such as social care for children and adults, libraries, transport, waste collection and disposal, street lighting and cleaning and road maintenance.
This is all funded by council tax - an annual fee home-owners or renters pay to the local council for the services it provides.

What is the Average UK Council Tax?

The so-called Council Tax band determines how much a resident pays for services received. There are eight Council Tax bands, A being the lowest and H the highest. A residence which is not used for business needs is assigned a banding based on what the property would have been worth on 1 April1991. The average council tax for a Band D property in England for 2022/23 was £1,966.
People paying council tax often do so in 10 monthly instalments, giving them a two months holiday. A parish tax may also be added to one's Council Tax in the case of those who reside in a parish council.

Does Everyone Pay Council Tax?

No: full-time students, some apprentices, those under the age of 18, severely mentally impaired persons, patients living in hospitals and care homes, are exempt from the tax. People can also apply for a discount if they are struggling on low income. Single people get a 25 percent reduction, and one may get a reduction of up to 50 percent if one shares the dwelling with a carer.
Sam Corcoran, the Labour leader of Cheshire East Council and CCN's vice-chairman, told media that despite imminent fiscal burdens on community residents, local authorities had "little choice" but to raise council tax, as the only alternative would be "drastic cuts to frontline services" amid inflation, surging costs and financial pressures on councils.
A homeless person sleeps in front of a closed clothing shop in London, Thursday May 14, 2020, as the country continues in lockdown to help stop the spread of coronavirus - Sputnik International, 1920, 27.12.2022
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