Prime Minister Keir Starmer has refused to rule out a potential council tax raid from Chancellor Rachel Reeves in a worrying sign for Britons.
During Prime Minster’s Questions (PMQ), Starmer was asked by Conservative Party leader Kemi Badenoch MP about the current cap on the levy.
As it stands, councils with social care duties are able to increase the tax annually by up to 4.99 per cent, without triggering a referendum. Other local authorities can raise the rate paid on council tax by up to 2.99 per cent.
According to the County Councils Network, three-quarters of councils were forecast to hike tax bills by the maximum increase in April 2024.
Addressing Starmer, Badenoch asked: “Will the Prime Minister confirm if he will keep the cap on council tax?”
In response, the Prime Minister said: “On the question of councils, she knows what the arrangements are.”
Do you have a money story you’d like to share? Get in touch by emailing [email protected].
The Prime Minister refused to guarantee Britons won’t be hit by council tax raid
GB NEWS
This failure to rule out changes to council tax come amid recent fiscal reforms rolled out by Reeves during her Autumn Budget last month.
Among the controversial changes announced by the Chancellor included making pension pots liable for inheritance tax (IHT).
Furthermore, Reeves confirmed National Insurance contributions paid by employers will be raised going forward.
The Government is under pressure to address the impact of austerity on public services since returning to power but has faced a roadblock due to underfunded councils.
THIS IS A BREAKING NEWS STORY…MORE TO FOLLOW
Taxpayers are struggling with the unsustainable burden of council taxPA