Martin Lewis on how to check if you are due a council tax refund
Britons already battling the highest tax burden on record are set to be clobbered by even higher council tax rates from April.
Michael Gove's levelling up department has told council chiefs they expect the maximum possible increase of 4.99 percent to hit voters from April, despite the ongoing cost of living crisis.
Such a move would pocket a whopping ￡2billion for councils, with the average band D property forced to stump up an extra ￡100 a year.
The warning comes amid an increasing number of councils declaring themselves effectively bankrupt.
Seven councils have issued so-called Section 114 notices since 2018, leading to a freeze in all non-statutory spending.
READ MORE: POLL: Should second home owners have to pay double council tax?
Birmingham is the most prominent council to have declared bankruptcy in recent years (Image: Getty)
Stay up-to-date with the latest Politics news Join us on WhatsApp Our community members are treated to special offers, promotions, and adverts from us and our partners. You can check out at any time. More info
Northamptonshire County Council were the first local authority to do so for 20 years, however were swiftly followed by Slough, Croydon, Thurrock, Woking, Birmingham and Nottingham, with Middlesbrough on the brink of following suit.
Polling by the New Statesman this year revealed one in four councillors believe their authority will soon go bankrupt.
This morning the IFS warns that such hikes to council tax will hurt the poorest households the most, as it forms a larger share of their monthly outgoings than wealthier families.
David Phillips, an economist at the IFS, told the Guardian: “Increasing council tax while cutting most direct taxes – for example, national insurance, income tax and especially capital gains tax and inheritance tax – would be regressive”.
Following pressure from Tory MPs, last week Michael Gove announced an extra ￡600 million for local government funding.
Don't miss...
Lee Anderson tears into ‘hypocrite’ Archbishop of Canterbury after Rwanda speech [LATEST]
MP told to withdraw ‘corruption' claims ahead of independent Teesworks report [EXCLUSIVE]
Vape ban will force one million Britons to turn to cigarettes or black market [LATEST]
Become an Express Premium member Support fearless journalism Read The Daily Express online, advert free Get super-fast page loading
Start 30-day
FREE trial
Tory MP Ben Bradley has warned about the tax burden (Image: Getty)
Mr Gove told MPs: “Taking into account this new funding, local government in England will see an increase in core spending power of up to ￡4.5billion next year, or 7.5 percent in cash terms, an above-inflation increase, rising from ￡60.2billion in 2023-24 to up to ￡64.7billion.”
However the 7.5 percent increase is based on a departmental assumption that every local authority will apply the maximum council tax increase this year.
Without such an increase, the new Government funding represents a rise of just four percent, in line with inflation.
The Conservative leader of Kent County Council, Roger Gough, said: “That spending power means us taxing the residents of Kent more. Or at least the government’s expectations are based on that.”
Trending
The Institute for Government has suggested the burden of council income has shifted away from central government funding since 2010, with councils now raising around 30 percent more from council tax.
The leader of Leeds city council said Westminster’s funding of their budget has fallen from 36 percent a decade ago to around 5 percent today.
Tory MP Ben Bradley, who also serves as leader of Nottinghamshire County Council, welcomed Mr Gove’s recent funding boost, but warned forthcoming tax cuts by Jeremy Hunt could be undermined by increases in local council tax.
DON'T MISS
Powered by
Tax savings: How you could slash HMRC bill by making this one simple change
Comments
Inheritance tax 'on track to break all previous records' as HMRC rake in 5.7billion
9 Comments
Nine million state pensioners to pay income tax from April after latest Hunt stealth raid
37 Comments
Council tax bills rise 5% to ￡2,170 in April but some pensioners could cut theirs to zero
24 Comments
Key financial dates for you to look out for this year including tax deadline
Comments
Sunak promises more tax cuts in pre-election move
106 Comments
'Embarrassing and telling!' Hundreds of Scottish civil servants pay lower tax in England
155 Comments
Lib Dem support halves as Sir Ed Davey feels fallout from role in Post Office scandal
141 Comments
Nigel Farage warns 'major Eurosceptic movement' is erupting across Europe in threat to EU
214 Comments
Rishi Sunak tucks into chicken dish and pastries after intermittent fasting ends
7 Comments
Nigel Farage explodes over new forecasts predicting 6 million more migrants by 2036
455 Comments
Fury at Three splurging millions on Chelsea FC deal despite slow 4G rollout in rural UK
4 Comments
Humza Yousaf under fire as SNP allows civil servants to work abroad for 28 days each year
22 Comments
Gary Lineker sparks fury as he 'likes' tweet defending MP suspended in Holocaust row
120 Comments
Council tax-grab will see rises greater than ￡100 - check how much yours will go up
10 Comments
State pension should be tax-free, says petition as anger grows over looming bills
92 Comments
Jeremy Hunt told tax hike for expensive foreign-owned properties could raise millions
41 Comments
Hunt's upcoming Budget tax cut will be your last. Enjoy it while you can
32 Comments
Horror 231% tax hike is what to expect with Keir Starmer in No10, warns MP
117 Comments
Tax-free state pension demands surge as Jeremy Hunt and DWP face fresh calls
135 Comments
Tax savings: How you could slash HMRC bill by making this one simple change
Comments
Inheritance tax 'on track to break all previous records' as HMRC rake in 5.7billion
9 Comments
Nine million state pensioners to pay income tax from April after latest Hunt stealth raid
37 Comments
Council tax bills rise 5% to ￡2,170 in April but some pensioners could cut theirs to zero
24 Comments
Key financial dates for you to look out for this year including tax deadline
Comments
Sunak promises more tax cuts in pre-election move
106 Comments
'Embarrassing and telling!' Hundreds of Scottish civil servants pay lower tax in England
155 Comments
Lib Dem support halves as Sir Ed Davey feels fallout from role in Post Office scandal
141 Comments
Nigel Farage warns 'major Eurosceptic movement' is erupting across Europe in threat to EU
214 Comments
Rishi Sunak tucks into chicken dish and pastries after intermittent fasting ends
7 Comments
Nigel Farage explodes over new forecasts predicting 6 million more migrants by 2036
455 Comments
Fury at Three splurging millions on Chelsea FC deal despite slow 4G rollout in rural UK
4 Comments
Humza Yousaf under fire as SNP allows civil servants to work abroad for 28 days each year
22 Comments
Gary Lineker sparks fury as he 'likes' tweet defending MP suspended in Holocaust row
120 Comments
Council tax-grab will see rises greater than ￡100 - check how much yours will go up
10 Comments
State pension should be tax-free, says petition as anger grows over looming bills
92 Comments
Jeremy Hunt told tax hike for expensive foreign-owned properties could raise millions
41 Comments
Hunt's upcoming Budget tax cut will be your last. Enjoy it while you can
32 Comments
Horror 231% tax hike is what to expect with Keir Starmer in No10, warns MP
117 Comments
Tax-free state pension demands surge as Jeremy Hunt and DWP face fresh calls
135 Comments
Tax savings: How you could slash HMRC bill by making this one simple change
Comments
Inheritance tax 'on track to break all previous records' as HMRC rake in 5.7billion
9 Comments
Nine million state pensioners to pay income tax from April after latest Hunt stealth raid
37 Comments
Council tax bills rise 5% to ￡2,170 in April but some pensioners could cut theirs to zero
24 Comments
Key financial dates for you to look out for this year including tax deadline
Comments
Sunak promises more tax cuts in pre-election move
106 Comments
'Embarrassing and telling!' Hundreds of Scottish civil servants pay lower tax in England
155 Comments
“There’s almost no point chopping ￡100 off tax bills nationally if you’re adding on to it with council tax. There is support out there and polling that people are keen to see investment in public services as a priority. There is scope to do both.”
There are also significant problems with how council tax is levied, being based on property evaluations from 1991.
This has led to the absurd situation where someone living in a ￡150,000 house in Hartlepool pays more than ￡200 a year more in council tax than someone living in an ￡8 million mansion in Westminster.
Related articles Tory plotters warned that May day coup against Rishi Sunak will be 'too late' EU 'declares economic war' in assault on democracy and vindication of Brexit 'EU bullying of Hungary exactly what it did to punish UK' - ex Brexit minister Mark Drakeford got given the bird and 'flushed ￡4.25m down the portaloo' Labour to 'work hand in glove' with union barons inflicting misery on millions