NOW GET SET FOR HIKE IN COUNCIL TAX

Cap on bill rises may be dumped

FAMILIES face mammoth council tax hikes as Rishi Sunak considers lifting a cap on bill rises.

At the moment English councils cannot increase charges by more than 2.99% without a referendum.

The Tories promised to keep this “veto” in their 2019 manifesto but are now discussing lifting the threshold for a referendum or even removing it.

The Local Government Association warned council tax would have to go up by well over 10% to balance books using tax hikes alone.

But it said that would be not sustainable or desirable.

Councils already have a £2.4billion shortfall since budgets were set in autumn, due to inflation and rising minimum wage. Average Band D council tax bills are £1,966, up more than £500 a year since the Tories took power in 2010.

The County Councils Network told the Mirror large-scale council tax rises would be unfair, adding: “The priority should be for government to allocate more funding for councils.” The Prime Minister and Chancellor Jeremy Hunt are planning £33billion in spending cuts and £21bn in tax hikes by 2027. They are at the same time trying to raise benefits and pensions in line with inflation, currently 10.1%.

The PM is also looking at lowering the £150,000 threshold at which people pay the 45p income tax rate. A less likely option they have discussed is raising the top rate, which was 50p until 2013. Either would be the final blow to the legacy of Liz Truss, who U-turned on a plan to scrap the 45p rate. A government source said: “When trying to fill a black hole of nearly £60bn, everything is on the table.”

COFFERS Chancellor