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Should we have to pay more council tax from April?

Council tax in most parts of England is going up almost 5% in April. But, with other rising bills and the impact of the Middle East conflict, is it right?

The majority of councils will raise council tax by just under 5% this April. Local authorities with a responsibility for social care  can raise taxes every year by up to 4.99% without government approval. 

Small councils without these duties can increase bills by up to 2.99%, and most are expected to increase council tax by the maximum amount.

But, with households facing other bill increases, should they be allowed to raise council tax by this much each year? Here are two sides of the argument.

The arguments for council tax going up

Council tax pays for a huge range of services in your local area. Your rubbish doesn’t magically get taken away each week: the bin workers need to be paid a fair wage. It means your local library can stay open. Street lights go on every night. Elderly people can be housed in care homes and the social care system is kept running.

Some of it goes towards police budgets to keep your community safe, or the fire brigades which you might need in an emergency. Councils also provide support to people facing poverty and housing issues, offering financial help, advice or accommodation.

Council tax is only a small amount of the overall funding (the rest comes from government grants and other sources) but it is an important one, and it means the community is all chipping in to make sure the local area is a nice place to live.

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Councils also need the money. The Local Government Association has said council budgets are under “severe financial pressure”, particularly from costs associated with social care and homelessness. Many have warned of cuts to these essential services. There are 35 councils which have already been granted exceptional financial support from the government. Your council tax might just make a difference to stop more going bankrupt.

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The arguments against council tax going up

Council tax might go towards some of these essential services – but if your streets are still covered in litter, your local library has closed down and the social care services are crumbling, is the system really working?

Campaign group Fairer Share argues that council tax is broken. It is calling on the government to replace council tax, the bedroom tax and stamp duty with a proportional property tax.

Council tax currently places the heaviest burden on young people, low earners and those living in less prosperous parts of the country – with the biggest beneficiaries of the current system already feeling the benefits of rising house prices.

Fairer Share wants to see council tax scrapped and replaced with proportional property tax, a simple flat rate of 0.48% on the value of your property. This would only be paid by property owners, not tenants, and payment could be deferred if property owners are unable to pay. 

The campaigners say the proportional property tax would raise roughly around the same as council tax but councils would save on administrative costs.

Meanwhile, debt charity StepChange has called for a change in how council tax is collected amid rising arrears. 

Peter Tutton, director of policy, research and public affairs at StepChange, said: “A single missed payment is too often met with demands to pay a full year’s bill and often escalated through to enforcement action, which can bring extra fees, stress and bailiffs at your door.”

Do you have a story to tell or opinions to share about this? Get in touch and tell us more



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