Chancellor Rachel Reeves' hikes will bite (Image: Getty)
Labour's national insurance tax raid could lead to households being hit with a £50 hike in council tax, the Tories claim. The Local Government Association has estimated that town halls in England are facing a £1.2 billion black hole as a result of the rise in national insurance contributions by employers and just £515 million in compensation from the Government.
The total split between the 24.2 million dwellings currently liable for council tax in England, excluding exemptions, would see each household’s bill jumping by £52, according to the analysis by the Conservatives. The £1.2 billion could pay for 49,000 new bin men or repair 13 million potholes, the party said.
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Tory leader Kemi Badenoch said: "Labour's jobs tax risks turning every local council into another Birmingham.
“This is what happens when Labour set out to punish business. They don't just hurt CEOs and boardrooms, they hurt ordinary working people.
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It comes as Labour-run Birmingham City Council, which went bankrupt last year, declared a major incident earlier this week over the impact of the ongoing bin strikes.
Council Tax is already increasing by £109 for a band D average property.
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Shadow local government secretary Kevin Hollinrake said: “Labour’s jobs tax will be disastrous for local government, and local residents.
“With Rachel Reeves plunging authorities across the country into a black hole of her own making it is inevitable councils will shift the pain onto residents with higher council tax or cut services.
“So once again it is clear that Labour’s ideological obsession with higher taxes will leave local residents paying more and getting less.
"When you vote Labour, you get trash, so only a vote for the Conservatives on 1st May will deliver lower taxes and better services.”
Chancellor Rochel Reeves has faced an ongoing backlash for increasing national insurance for employers in her autumn budget, with the change coming into force this Sunday.
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A Labour spokesperson said: “The numbers are clear: Conservative councils on average charge households £302 more than Labour councils. When Labour entered government, we were left with a £22 billion blackhole in our public finances, with local services pushed to breaking point. It’s time Kemi Badenoch came clean and told the public what she’d cut if she doesn’t agree with our investment in the NHS and other public services.
“Thanks to the action our Labour Government has taken, local government is receiving £69 billion of funding this year to stabilise councils and invest in services for local people.
“Labour is cleaning up the mess the Tories left behind after 14 years of chaos and decline. Our Plan for Change has brought down NHS waiting lists for five consecutive months, delivered a boost to council finances and is delivering funding to fill 7 million potholes this year.”