Keir Starmer (Image: Getty)
Keir Starmer was condemned for making “false promises” after his Government announced massive increases in council tax – despite promising to freeze it.
Most councils will be allowed to increase the tax on residents by 5%, double the rate of inflation, while some have been given permission for increases of up to 10%.
But while leader of the opposition, Sir Keir pledged to freeze council tax for a year, using a windfall tax on profits from energy companies to pay for it.
The Labour leader said in March 2023: “We’re announcing today that Labour would freeze next year’s council tax, using those windfall profits. It’s a choice the government can make now that money is on the table. We would obviously vote for it. Ten billion pounds and they’re not using it to help working people.”
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Kevin Hollinrake, Conservative Shadow Secretary of State for Levelling Up, Housing and Communities, said today: “It is clear from this settlement that Labour are once again pushing the burden on to taxpayers after they promised to freeze council tax.
“Their Local Government Finance Settlement will mean that councils will have to raise council tax to accommodate Labour’s jobs tax. This means that local people will pay more for less when it comes to local services, especially in rural areas which are losing the Rural Services Delivery Grant that Labour have abolished.
“The Labour Party have made false promises to local people, promising to freeze council tax while many councils will now have to raise it due to Labour’s political choice to raise council tax. From Whitehall to your town hall, under Labour, you pay more and get less.”
Most councils will be allowed to increase the tax paid by households by 5%, double the current 2.5% rate of inflation, but a number will be allowed additional rises.
Deputy Prime Minister , the Cabinet minister in charge of local councils, has decided Windsor and Maidenhead Borough Council will be allowed a rise of 9%, Birmingham City Council will be allowed a rise of 7.5%, Bradford Council will be allowed a rise of 10%, Newham Council will be allowed a rise of 9%, Somerset Council will be allowed a rise of 7.5% and Trafford Council will be allowed to increase council tax by 7.5%.
It means people in a band D property in Bradford could see the charge from the council increase by £170 – in addition to an increase in the amount charge by the local police and fire authorities, which are added to council tax bills.
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The limit set by Ms Rayner is the biggest increase councils are allowed to charge before they are forced to hold a referendum of local voters asking if they agree with the increase. However, in practice councils are almost certain to impose the maximum rise possible.
According to the Local Government Association, Chancellor Rachel Reeves’s decision to increase National Insurance, which is paid by employers including local authorities, has helped push up bills. The Government has provided them with some extra money to meet the extra cost but that leaves councils with a £1.2billion shortfall.
Some authorities had asked for permission to impose even bigger tax hikes, with Windsor and Maidenhead telling Ministers it wanted a 25% rise.