Labour andTory blame game over 5% tax hike

Bills set to rise just as furlough scheme comes to an end

ABITTER row has broken out between Labour and the Conservatives over who is to blame for above-inflation council tax increases.

Labour says the average Band D council tax bill across the West Midlands could rise by £90 this year, after the Government told councils they could increase taxes by 5 per cent.

The highest potential increase is in Walsall, where bills could rise by £105. Bills in Birmingham could rise by £88.

But Conservatives argue that local councils are free to decide whether to impose the increase or not – and claim that Labour-run authorities are more likely to put up bills.

It comes after Chancellor Rishi Sunak told councils they could increase council tax by up to 5 per cent. That includes an increase of 2 per cent to basic council tax, plus an additional 3 per cent increase with the money ring-fenced for social care. Councils can only increase bills above this if they hold a local referendum on the proposal.

In theory, the Government has simply set a maximum increase and councils are free to impose a smaller rise, or even freeze bills entirely. But many council leaders argue that cuts in grants from central government, and increased demands on social service departments, mean they are forced to raise as much money from council tax as they can.

Labour says tax hikes will come into effect in April just as many workers face redundancy as the Government’s furlough scheme comes to an end. An estimated 275,434 people were on furlough in the West Midlands on December 31, although it is unknown how many will return to work once furlough ends and how many will simply become redundant.

Steve Reed, Labour’s Shadow Communities and Local Government Secretary, said: “The Prime

Minister’s £2 billion council tax bombshell will hit many hardpressed families at the worst possible time – just as many receive their p45s.

“This Government should not be making families pay the price for their broken promises to support councils. The Prime Minister must scrap this economically illiterate council tax rise.”

Amanda Milling MP, Co-Chairman of the Conservative Party, said: “Keir Starmer’s Labour are the kings of council tax rises.

“Yet again Labour are playing political games when it is Labour councils hiking up council tax across the country.”