Council tax bills to rise by 25% in some UK areas. (Image: Getty)
Eight local authorities are set to increase council tax above the usual legal limit, affecting over four million people.
One area in the UK could see their bills rise by a staggering 25%, which would be the largest hike in England in two decades. Another seven councils struggling with finances have proposed increases between 7.99% and 15% from April.
Government rules state that local authorities are usually permitted to raise council tax by 4.99% unless taxpayers approve a larger increase in a referendum. However, a legal loophole is seeing councils exploit the system.
Authorities struggling financially can use the loophole of threatening to issue a Section 114 notice, effectively declaring bankruptcy. This means they are able to apply for higher rises, which are then signed off by the Secretary of State for Housing, Communities and Local Government, .
According to the , some 4.4million people in the eight councils will suffer as they face rises by hundreds of pounds.
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The Royal Borough of Windsor and Maidenhead residents are facing the highest increase. (Image: Getty)
The Royal Borough of Windsor and Maidenhead will face the brunt of the rises as an increase of five times the usual limit will add £451 to residents’ bills.
Labour’s local authority Birmingham is also weighing up a 9.99% rise for a second consecutive year. This means Band D Council Tax payers would see their bills rise by a combined £400 over two years should the rise come into force.
Bradford will see locals have an extra £170 added to the average bill, with North Somerset putting an average of £256 onto residents’ bills.
Hampshire will have an extra £230 added to the bill of a band D property.
Angela Rayner would sign off the proposed increases. (Image: Getty)
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Benjamin Elks, from the TaxPayers’ Alliance campaign group, told the DailyMail: “Local taxpayers are fed up with having to pick up the tab for reckless councils.
“As hard-working households across the country tighten their belts, local authorities are refusing to rein in their out-of-control spending, squandering cash on pointless pet projects.
“It’s high time town halls focused on delivering core services efficiently, not asking local residents to keep funding their dangerous addiction to spending.”
A spokesman for the Ministry of Housing, Communities and Local Government said: “No decisions have been made on council tax increases and we will only consider agreeing to requests for rises above 5% in exceptional circumstances, in line with the previous government’s position.
“Councils are ultimately responsible for setting their own council tax, and we will put taxpayers at the forefront of any decision.”
Full list of councils
Windsor and Maidenhead:
25% rise, population of 154,00
Hampshire:
15% rise, population of 1.4 million
North Somerset:
15% rise, population of 215,000
Bradford:
15% rise, population of 560,000
Newham, East London:
10% rise, population of 358,000
Cheshire East:
9.99% rise, population of 406,500
Birmingham:
9.99% rise, population of 1.16 million
Slough, Berkshire:
7.99% rise, population of 160,000