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TAXING TIMES

Council tax bills to soar by more than £250 ON TOP of National Insurance hike to pay for social care

FAMILIES face paying more than £250 extra in council tax on top of the rise in National Insurance, it emerged yesterday.

Labour claimed town halls have no option but to introduce above-inflation rises to fund the shortfall in adult social care.

Council tax could rise by more than £250 as funding gap for adult social care reaches £2.7billion
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Council tax could rise by more than £250 as funding gap for adult social care reaches £2.7billion

The funding gap is set to rise to £2.7billion within three years, according to Local Government Association estimates.

But in the first three years of the 1.25 per cent rise in NI, only £5.4billion of the £36billion raised will go into improving the care sector.

The Government’s published social care plan aims to meet cost pressures through the council tax, a dedicated local “precept” or long-term cost cutting.

Analysis shows that an average Band D home would have a total of £261 of council tax added over the next three years, with the annual bill rising to £2,159 by 2024/5.

Labour leader Sir Keir Starmer, left, said: “Working people and families face a tax hike because of the Conservatives’ failures on social care.

"Now they face an extra clobbering through a rise in council tax.”

Tory MPs have already said they feel jittery about the NI rise next April, which broke a 2019 manifesto pledge.

Meanwhile, Taxpayers’ Alliance research shows that individuals in so-called Red Wall seats will proportionally pay more National Insurance than those in the South East and London.

It comes as polling gave Labour a narrow two-point poll lead.

A government spokesman said: “We have taken decisive and historic action to fix this crisis that governments have ducked for decades, ending the catastrophic care costs that can affect one in seven people.”

Labour leader Sir Keir Starmer said that working people and families face a tax hike because of the Conservatives' failures on social care
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Labour leader Sir Keir Starmer said that working people and families face a tax hike because of the Conservatives' failures on social careCredit: Getty
Boris Johnson accepts he is breaking Tory manifesto pledge by raising National Insurance by 1.25 per cent
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