Some property is exempt from council tax. Some people don’t have to pay council tax and some people get a discount.
UK households will be hit with eye-watering council tax hike next month.Council tax is a system of local taxation collected by local councils – it’s a tax on domestic property. Some property is exempt from council tax. Some people don’t have to pay council tax and some people get a discount.
The average bill is going up £109. For the third year running, almost all town halls will raise levies by the maximum five per cent threshold — meaning the annual cost for band D properties will hit £2,280.
The figure marks a 20 per cent rise on 2021-22, when the average band D bill was £1,898. Conservative Party MP and Shadow Local Government Secretary Kevin Hollinrake yesterday accused Labour Party Prime Minister Sir Keir Starmer of causing more woe for town halls by slapping extra National Insurance Contributions on employers.
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He said: “This Labour government is driving up costs for councils across the country. This has been engineered by Labour, who have left town halls to take the blame when record bills hit the doormat.”
The Ministry of Housing, Communities and Local Government said: “We are under no illusion about the scale of financial issues facing councils we inherited and our work is underway to fix the foundations and bring long-term stability to the sector.
“And while councils are ultimately responsible for setting their own council tax levels, we have been clear that they should put taxpayers first and carefully consider the impact of their decisions.”
“It said: “We are 12 months away from what would be a financial catastrophe for local councils.” All homes are given a council tax valuation band by the Valuation Office Agency (VOA). The band is based on the value of your home on 1 April 1991. A different amount of council tax is charged on each band.
Each local council keeps a list of all the domestic property in its area, together with its valuation band. This is called the valuation list.