Council tax bills ‘to rise by £70’ next year as ministers confirm 4% hike
HOUSEHOLD bills are set to increase by an average of £70 a year after ministers revealed that council tax could rise by 4 per cent next year.
The Ministry of Housing, Communities and Local Government (MHCLG) has said it will give local councils the power to put up the tax by 2 per cent.
They will also be able to add another 2 per cent on the tax to help pay for social care in the local area.
It means that the average Band D council tax bill will rise by £70, from £1,750 in 2019/20 to £1,820 from April next year.
Houses that fall into the more expensive Band H could see bills hiked by £140.
The possible tax hike, plus a £1billion grant, will allow local authorities to access an additional £1.5billion for social care, the government claims.
But it could see families buckle under the pressure as a 4 per cent increase is more than the current rate of inflation, which stands at 1.5 per cent according to the Office for National Statistics.
Housing Secretary Robert Jenrick made the announcement in a statement published on the MHCLG website, having notified the Commons through a formal written statement on Friday.
He also said that local governments will be able to raise the taxes by more than 2 per cent each if they hold a referendum.
The plans are part of a wider promise to pump £49.1billion into local authorities to improve services such as support for rural areas, and rewards for building new homes.
Mr Jenrick said: "We recognise the importance of addressing the challenges in our social care system.
How do I apply for a council tax refund?
HERE is how to claim back any council tax you may be owed.
- Speak to your doctor about whether you have a severe mental impairment or not.
- If you do, then you need to ask you council for a Serious Mental Impairment application.
- After that you need to send the form back to the council with supporting evidence like your doctor's diagnosis.
- How long it takes to get your refund varies with different councils, so it is best to check with yours to see how long you will have to wait.
- Charities such as , and all offer free help and advice on how to claim back any council tax you are owed.
"This is why we want to build the same level of cross-party consensus on social care as we have with the NHS, to make far-reaching changes to the way these services are financed and delivered.
"In the meantime, we will do all we can to support local authorities."
On the overall pledge of cash, he added: "It is a strong and well-balanced package, that delivers significant extra resources to the priority areas of adult and children’s social care, while offering protection to other key service areas."
More details on exactly how much your local authority will put bills up by are likely to be revealed in 2020 before April.
Most read in money
In previous years, we've seen the announcement made in March time, ahead of the start of the new financial year.
Last year, council tax bills rose by £78, while the year before an average of £81 was added to bills after local governments added an extra 5.1 per cent to the tax - the highest rate in 14 years.
Households may be able to lower their council tax bill by challenging the Band that they are in.