The new tax will impact millions of Brits (Image: Getty Images)
Angela Rayner’s new mega-councils policy will leave millions of Brits with higher tax bills, according to reports.
The plan will see more mayors across the UK who will be able to impose the “mayoral precept” on their constituency, reports The Telegraph.
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An analysis by the paper showed that seven million households could be "fleeced" by the extra charge of up to ￡56 a year.
The optional charge set by the mayor is intended to raise money for local projects but could anger Brits who already saw record tax rises in October's Budget.
Rayner will give more powers to local government under her "devolution revolution" plans (Image: Getty Images)
READ MORE: 'Ed Miliband and Angela Rayner have just sunk Rachel Reeves' big new plan' [REPORT]
Four out of 11 mayors elected before 2024 have introduced the mayoral precept, all four areas are led by a Labour mayor.
These areas include Cambridgeshire and Peterborough, Greater Manchester, the Liverpool City region, and London.
Ms Rayner’s plans could see new mayors appointed in Hampshire, Sussex, Kent, Essex and Cheshire.
The Deputy Prime Minister said: “Mayors will be hard-wired into the fabric of how we govern and will lead the way on housebuilding, transport skills, and more.
“Too often, mayors’ hands are tied by Whitehall, even when it comes to allocating their own budgets.
“So we will create a clear and transparent route for all mayoral combined authorities to receive an integrated settlement. This means moving resources between projects that matches what their people need.”
Taxpayers will be left to foot the bill for the debts of smaller, failing councils that get abolished.
Londoners have seen a 71% rise under Sadiq Khan during his time in office and in Mancheste the levy has increased by 66% -now at ￡113 per household.
Kevin Hollinrake, the shadow housing minister, said: “Conservative mayors like Andy Street and Ben Houchen did not charge a precept but Labour mayors typically use this as an excuse to hike everyone’s taxes, as high as ￡471 a year for a Band D property in Sadiq Khan’s case.
These new proposals offer much greater scope for more tax rises under Labour mayors.”
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Kier Starmer's Labour party plans to provide more powers to local government (Image: Getty Images)
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Earlier this year, there was controversy surrounding the mayoral share of council tax in Cambridgeshire and Peterborough as it tripled from ￡12 to ￡36.
At the time, councillor Anna Bailey, leader of the East Cambridgeshire District Council, said: “My view is devolution was and should be about receiving funding and powers from Government – not a new excuse to tax local people.”
Ms Rayner’s new policy has been met with criticism and concerns over rising costs.
Phil Broadhead, the chairman of the Conservative Councillors’ Association, also highlighted the economic shortfalls: “There are lots of unitary authorities at a financial precipice and needing tens of millions of pounds just to keep their heads above water – this includes Somerset, a new unitary. That is not sustainable.”
“Councils of 500,000 over big rural areas will begin to lose their identity. Residents will lose the ability to understand where they sit in the decision-making process and the ability to influence."
It comes after the Government paved the way for council tax to rise by an average of ￡110, despite Labour promising not to raise council taxes for “working people”.
Local authorities were given permission to raise council tax by as much as 5pc.
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A Ministry for Housing, Communities and Local Government spokesperson said: “The Mayoral Council Tax Precept was introduced under the previous government and we’ve been clear any precept must be affordable and proportionate to their needs.
“Safeguards also remain to ensure any changes are modest and protect local people, for example Liverpool City Region’s precept is just ￡19 annually of a regular Band D bill.”