Council tax bills could rise in richer areas to fund struggling authorities
Council tax bills across the UK could soon see a major shake-up as a new Labour plan looks to make funding ‘fairer.’ Led by deputy prime minister Angela Rayner, the plans will ensure more government funding goes to areas with the highest need.The new approach looks to address issues in local authorities that are enforcing large council tax hikes every year while residents repeatedly see little return for this money. By making more central funds available to areas where demand is greatest, these areas will be more able to ask for lower council tax increases.However, this will likely mean that less funding will be available to areas where local services are not stretched, and residents have not been asked to pay such steep bill rises in recent years. As such, these councils could be forced to recoup the funding from maximising council tax revenue.A Ministry of Housing, Communities and Local Government (MHCLG) official told The Times that the current system has resulted in “perverse outcomes, where some authorities are struggling to provide basic services whilst others are better off”.Birmingham City Council raised its council tax by 7.5 per cent this year amid funding struggles More