A whopping 2.5 million families in England could face paying at least £3,000 in council tax next year under Labour.

The grim figures come despite many local authorities slashing services such as libraries and bin collections – and as some councils have declared themselves virtually bankrupt.

Sir Keir Starmer has now said struggling councils can ask households for even more money each year, with fears some local authorities will raise rates by 5%.

If that happens nationally at least one in ten homes could be hit by a bill of nearly £3,000, according to the Telegraph.

Six years ago no one in England paid a bill of more than £4,000, but in 2024-25 more than 139,000 homes faced the hefty demand, and the number could triple to 375,000 by April next year.

Labour claim the tax hikes will help ensure local authorities are funded next year, with an additional £1.8 billion to be raised through the levy in 2025/26. Business rates and funding connected to new homes will also contribute £600 million.

A Ministry of Housing, Communities and Local Government spokesman told the Telegraph: “Within the cap the Government have set out, it is for councils to decide on the level of council tax to set.

“In line with the position taken by the previous administration, we’re committed to limiting increases to 5pc without a referendum to restrict those costs and so residents can have their say on anything beyond that.”

Councils wishing to increase tax rates by more than the up-to-5% cap are required to receive Government permission or hold a referendum.

This means the average band D council tax household faces an above-inflation increase amounting to more than £100 next year.

Most Popular Comments

“We’re already paying £3k and they still charge us for garden waste. “ 8

“If they raise bills by 5% or more its not to increase services its to pay big pay …” 7

“The reason why they are short of money is there are too many people not paying …” 6

JOIN THE DEBATE

During a debate in the House of Commons last week Labour backbencher Clive Betts suggested councils might in future have the freedom to raise tax as they wish.

He proposed “a conversation with councils and the public more widely about whether thresholds at all are appropriate”.

Conservative MP Bob Blackman asked whether the Government had “any plans whatsoever to do a revaluation of properties” to assess which bands they fall into.

English property banding is currently based on 1991 property prices.

Communities minister Matthew replied: “He tempts me to discuss the Local Government Finance Settlement ahead of it being formally presented to this House. I’m afraid I can’t do that.”