Council tax ‘set to rise above £2,000 for first time ever’

Jeremy Hunt

Jeremy Hunt will unveil his fall statement on Thursday (Image: Getty Images/Shutterstock)

Council tax is expected to surpass the £2,000 mark for the first time in England, under Tory plans already branded as “regressive”.

Jeremy Hunt is expected to scrap much of what his predecessor did Kwasi Kwarteng announced in his disastrous mini-budget on September 23rd.

On Thursday, the new chancellor will release his fall statement on state tax and spending plans, with social activists already fearing the worst.

Currently, the municipal tax can only be increased by about 3% without a referendum of the area’s residents.

According to the Telegraph, Rishi Sunak and Mr Hunt are preparing to allow town halls to increase the levy by 5% without locals having the final say.

This means millions of households in Band D would have to pay up to an additional £100 in April 2023.

This would take her annual bills to over £2,000 for the first time.

Mr Hunt has already confirmed Liz Truss’ £2,500 energy bill cap will be scrapped next year (Image: Simon Walker)

Meanwhile, in the most expensive band H, homeowners could end up paying up to £200 extra, with their bills topping £4,000.

The move would also break a pledge by the Conservative Party in 2019 that it would stay on course.

Labor MPs have previously criticized the plans, arguing that such an increase will do little to help financially strapped councils.

Rhondda MP Chris Bryant said: “Collecting council tax to pay for welfare is insane.

“It’s declining, large increases in council tax rates bring in relatively little money, and government agencies in poorer, higher-cost areas are benefiting the least.”

Bev Craig, leader of Manchester City Council, stressed that Manchester has been cut by £428m annually since 2010.

Over the weekend, Richard Burgon stressed there was “not a need for a single penny of cuts or tax hikes for citizens”.

“When Jeremy Hunt says ‘difficult decisions’ he means difficult for you,” said the East Leeds MP.

“He doesn’t mean it’s difficult for the super-rich, whose wealth has skyrocketed over the past decade.

“There is no need for a penny of cuts or tax increases for ordinary people. It’s a choice. Instead, tax the rich.”

Mr Hunt has already confirmed that the £2,500 cap on Liz Truss’ energy bill, which is set to apply for two years, will be scrapped in April.

This will leave millions of people with an increase of £900 a year – around £75 more a month.

He called himself “Scrooge” before Christmas and said: “We’ll all pay a little more tax”.

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Justin Scacco

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