![Pinterest](https://pinterest.com/pin/create/button/?url=https://uknews.evprotec.com/council-tax-bills-to-rise-by-250-a-year-after-jeremy-hunts-massive-hike/&media=https://uknews.evprotec.com/wp-content/uploads/2022/11/0_Autumn-Statement-Jeremy-Hunt-will-pledge-to-face-the-economic-storm.jpg&description=In his Autumn Statement, the Chancellor said local authorities will now be allowed to raise council tax by 5% a year, up from the current 3%Autumn Statement: Key announcements from Jeremy HuntFamilies will be hit by £250 a year council tax rises by 2028 following Jeremy Hunt's Autumn Statement, new analysis shows. The Chancellor announced sweeping changes to the way local authorities can raise funds - giving them the power to hike council tax by up to 5% a year. At the moment they cannot go above 3% without getting approval by holding a local referendum. It is expected that nearly all cash-strapped Town Halls will ask residents for the full sum as they try to protect services amid soaring inflation. However the hikes will be "extremely difficult" for struggling households, the Office for Budget Responsibility (OBR) warned today. The Treasury reckons that 95% of councils will hike council tax by the full amount they're allowed. Families will be hit by £250 council tax rises by 2028, new analysis shows ( Getty Images/iStockphoto) This means, the OBR warns, the average Band D bill will rise to around £2,300 in 2027/28. The OBR says the expected windfall is the equivalent of raising the average Band D bill by £250 in 2027/28. Bands are based on the historic value of a home - meaning the hike for those designated as A, B and C will be lower, while it will be even higher for those from E to H. The move will raise £3.3 billion in 2026/27, rising to £4.8 billion in 2027/28, the OBR said. Today the County Councils Network - which represents 36 mainly Conservative authorities - said local authority leaders still face "very difficult decisions" amid sky-high inflation and social care costs. Chairman Tim Oliver also said "some county leaders may be reluctant" to impose 5% hikes "during a cost-of-living crisis considering ratepayers in county areas currently pay the highest bills on average". Georgia Gould, the chair of London Councils, said borough finances "remain in a critica){kind=link}
In his Autumn Statement, the Chancellor said local authorities will now be allowed to raise council tax by 5% a year, up from the current 3%
Families will be hit by £250 a year council tax rises by 2028 following Jeremy Hunt’s Autumn Statement, new analysis shows.
The Chancellor announced sweeping changes to the way local authorities can raise funds – giving them the power to hike council tax by up to 5% a year.
At the moment they cannot go above 3% without getting approval by holding a local referendum.
It is expected that nearly all cash-strapped Town Halls will ask residents for the full sum as they try to protect services amid soaring inflation.