Sunak tells councils their inflation-busting tax rises are ‘not right’

RISHI SUNAK has lambasted town halls that have asked the Government for permission to bring in inflation-busting council tax increases.

Several local authorities have been granted permission to increase council tax by more than 5 per cent, including Birmingham, because they have declared themselves effectively bankrupt.

The Prime Minister revealed that the Government had rejected a bid from Liberal Democrat-run Somerset to be allowed to impose a council tax rise of 10 per cent, even though it has not declared effective bankruptcy.

Council leaders in the county had asked for the 10 per cent rise in an effort to close a £100 million budget deficit.

In an interview with BBC Radio Somerset, Mr Sunak said: “It’s important that councils manage the cost of living for their residents, and councils that are asking the Government to just allow them to whack in incredibly high council tax rises – [that] is not right.”

“We can strike the balance between councils raising the money they need, but making sure they don’t unnecessarily burden people.”

Singling out Somerset council for criticism, he urged it to hold a local referendum if it wants to put up council tax by more than 5 per cent.

“Somerset of course can talk to their residents if they want to have a referendum on putting in excessive council tax rises, but ultimately they should manage the finances,” he said.

Bill Revans, the Lib Dem leader of Somerset council, said the Government’s decision was “disappointing”.

Earlier this week Michael Gove, the Communities Secretary, said that he would allow Birmingham to raise the levy by 10 per cent.

It will leave a household in a typical Band D home paying about £175 more next year. Those in the most expensive Band H homes will pay £350 more.

Mr Gove said: “It’s disappointing that Birmingham city taxpayers are having to foot the bill for the council’s poor governance and decision making.”

Council leaders looking to raise tax by more than the 5 per cent cap either have to be granted permission from central government or hold a local referendum on doing so.

Bedfordshire is the only council to have held such a referendum to date, holding a vote in 2015 in which local people rejected the idea of higher tax rates.

Mr Gove has also allowed Thurrock, Woking and Slough to do the same. All had issued section 114 notices, which means they cannot balance their books.

Inflation stands at 4 per cent. The vast majority of councils are expected to put up their bills by the maximum 5 per cent allowed in April.

Meanwhile, Esther McVey said town halls would be told to cut back on expensive office away days and diversity training if they want to put up council tax.

The so-called “common sense minister” said councils should reduce spending on controversial “equality, diversity and inclusion” (EDI) initiatives in return for asking taxpayers for more money.

Ms McVey, whose official title is Minister without Portfolio (Cabinet Office), told GB News: “The taxpayers are saying, and I absolutely agree with them, we don’t want to be paying for these ballooning away-days and these spurious courses. What we want to do is to make sure you are doing the job at hand. We want to have value for money and we want to make sure there isn’t any waste.”

Last year, it was revealed councils spent tens of thousands of pounds sending delegates to an alcohol-soaked property jamboree on the French Riviera.

A study two years ago found that across 397 councils, there are 794 equality, diversity and inclusion members of staff. Conservative Way Forward found that the average cost per council was £67,000, totalling £30 million a year across the country.

The minister dded: “You can’t put up taxpayers’ bills, you can’t be asking the Government for more money and yet not getting rid of wasteful spending yourself.”