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Home News Four million households face council tax rises up to five times the legal limit from April – as bankrupt local authorities look to exploit loophole to plug blackholes in their books

Four million households face council tax rises up to five times the legal limit from April – as bankrupt local authorities look to exploit loophole to plug blackholes in their books

by Abella
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More than four million people are confronted with strong increases of municipal taxes above the maximum that is normally permitted by the law.

Households in one area could see their accounts rising by 25 percent – the largest increase in England in twenty years.

Seven other struggling municipalities throughout the country have proposed enormous elevations of between 9.99 and 15 percent from April, because they want to exploit a legal Maas in the law, which increases the pressure on the already underesting domestic finances .

According to the rules of the government, local authorities may increase the municipal tax by a maximum of 4.99 percent.

Every greater increase than this should normally be approved by a referendum from local taxpayers – something that has never happened because councilors know how unpopular this step would be.

But municipalities can exploit a Maas in the law by threatening to issue a so-called section 114 notification, with which they actually declare themselves bankrupt and enable them to go for higher rises, which would be signed by Angela Rayner in her role As State Secretary for Housing. Communities and local administration.

About 4.4 million inhabitants of eight local authorities will undergo this fate, according to an audit of Mail, which raises new questions about the mismanagement of government money.

Benjamin Elk, from the TaxPayers 'Alliance campaign group, said:' Local taxpayers are tired of having to pay the bill for reckless municipal councils.

Four million households face council tax rises up to five times the legal limit from April – as bankrupt local authorities look to exploit loophole to plug blackholes in their books

Deputy Prime Minister Angela Rayner leaves Downing Street after a weekly cabinet meeting

Households in a certain area could see their accounts rise by 25 percent - the largest increase in England in twenty years - to finance local services such as waste collection (photo)

Households in a certain area could see their accounts rise by 25 percent – the largest increase in England in twenty years – to finance local services such as waste collection (photo)

Local people are protesting outside the town hall of Croydon on March 1, 2023 in Croydon, England. The protest is part of a campaign to stop the increase in the municipal tax by 15 percent of mayor Jason Perry

Local people are protesting outside the town hall of Croydon on March 1, 2023 in Croydon, England. The protest is part of a campaign to stop the increase in the municipal tax by 15 percent of mayor Jason Perry

'While hard -working households throughout the country cite the belt, local authorities refuse to keep their out of control expenses in check, causing them to waste money on useless favorite projects.

“It is high time that town halls concentrate on the efficient delivery of core services, and not asking local residents to continue to finance their dangerous expenditure addiction.”

The 154,000 inhabitants of the Royal Borough or Windsor and Maidenhead in Berkshire, which also includes the Royal Family on the Windsor estate, are confronted with the largest increase in municipal taxes in the country: five times the usual maximum, which £ 451 on the average costs.

The local government led by the LIB DEM wants to implement an increase of 25 percent, which would be the biggest increase in England if it was ultimately approved by the ministers.

Tory opposition leader Maureen Hunt said: “Residents are in action – this is a huge amount to increase taxes during a crisis in the cost of living – it is heartbreaking to many and a very drastic increase.”

The local government of Labor, Birmingham, is considering increasing the municipal tax for the second consecutive year by 9.99 percent because she tries to recover from the disastrous interaction with its finances in the past. If the increase continues, the taxpayers of the band D Council in the second city in England will see their accounts rising with a total of £ 400 over a two -year period.

The municipality of Bradford run by the Labor party, which was saved by the government last year for an amount of £ 220 million and is currently the British culture city, has also requested permission to have taxes for its 560,000 inhabitants with a maximum of 15 percent from April raise. , which amounts to around £ 170 on the average account.

In December, the North Somerset Council, led by the LIB DEMS, also proposed an increase in the municipal tax by 15 percent, which would reach an average of £ 256 per year, and the 215,000 inhabitants asked if they wanted to donate £ 1,000 for the budget of the to help fill authority. Financing deficit of several millions.

Residents of Windsor and Maidhead are confronted with an increase in the municipal tax by 25 percent (photo: town hall of Maidenhead)

Residents of Windsor and Maidhead are confronted with an increase in the municipal tax by 25 percent (photo: town hall of Maidenhead)

Among the 154,000 inhabitants of the Royal Borough of Windsor and Maidhead in Berkshire is the royal family on the Windsor estate (photo: Windsor Castle)

Among the 154,000 inhabitants of the Royal Borough of Windsor and Maidhead in Berkshire is the royal family on the Windsor estate (photo: Windsor Castle)

The Birmingham city council is considering increasing the municipal tax for the second year in a row by 9.99 percent (photo: Birmingham City Council House)

The Birmingham city council is considering increasing the municipal tax for the second year in a row by 9.99 percent (photo: Birmingham City Council House)

Hampshire County Council, which is struggling with a shortage of £ 182 million and 1.4 million inhabitants, has asked ministers for permission to increase the municipal tax by 15 percent in 2025/2026, as a result of which £ 230 is added to the account of one Band D-ownership.

In a letter to the municipal councilors, Carolyn Williamson, CEO of the Authority, said that the request is a 'proactive, preventive step' of the council to ensure 'greater resilience'.

By 2026/2027, she said, the prospect of a section 114 declaration must be made 'a real possibility if there are no deep-rooted changes in the way the local administration is financed'.

Huge increases are also planned by the London district of Newham, the Labor and independent coalition of Cheshire East and the Slough-led Slough, which has already risen by more than 5 percent in the past two years.

A spokesperson for the Local Government Association said: 'Many municipalities have been faced with the difficult choice to increase the bills to get much -needed financing to provide services, at a time when they are well aware of the considerable burden That some households could impose. .

According to the government rules, local authorities may increase the municipal tax by a maximum of 4.99 percent (file image)

'Although municipal taxes are an important financing flow, the considerable financial pressure with which local services are confronted cannot be taken care of by income from municipal taxes alone. Various amounts are also collected in different parts of the country, which have nothing to do with the need.

“The municipalities need a considerable change in our financing to stabilize the finances of the local government, so that we can provide the services that the locals want to see.”

A spokesperson for the Ministry of Housing, Communities and Local Governance said: 'No decisions have been made about the increase in municipal taxes and we will only consider in exceptional circumstances to agree to requests for increases above 5%, in line With the position of the previous government.

“The municipalities are ultimately responsible for determining their own municipal tax, and we will put taxpayers first with every decision.”

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