There have been misleading claims reported in The Telegraph today saying that the government is planning an ‘£18bn tax raid’ through a council tax increase in England over the next few years.
This is incorrect. It is for individual councils to decide the level of council tax for their respective areas, and councils have not set the tax rates beyond this year.
We expect councils to take into consideration a range of factors, including the impact on taxpayers - but are clear that when they do set rates, they should put taxpayers first.
Referendum principles are set each year which are subject to consultation and the approval of the House of Commons.
Separately, we are also providing support for vulnerable taxpayers, with more time for them to settle outstanding bills and reforms to make the system fairer. From next year, households will be given 63 days instead of the current level of just two weeks to settle their bills and councils will be required to work with them on a sustainable repayment plan.
And billing for council tax will be shifted to 12-month payments by default, rather than the current 10 months, and the costs which councils can charge when seeking a liability order – which councils may seek, when necessary, to recover overdue bills – will be capped at £100.
An MHCLG spokesperson said: “Councils have not yet set tax rates beyond this year, and it’s inaccurate to suggest so.
“Individual councils decide the level of council tax in their areas, taking into consideration a range of local factors, but we expect them to fully take into account the impact on taxpayers.”
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