What Changes are Being Made to Your Council Tax Next Year?
- Your Council Tax bill could raise by £100 in 2018
- Councils are able to increase tax by up to 5.99%
- Extra money for local services
Brits could see their council tax bill rise in 2018, as the government tries to address shortfalls in social care.
All councils will be able to increase their council tax bands by 2.99% next year to fund local services.
On top of this, 152 councils, which includes all London boroughs and county councils, will be able to increase by an additional 3% to fund social care services.
This means that for some families, their bills will rise by up to £100 a year as a result of the extra charges.
Sajid Javid, the Communities Secretary, also announced that ten councils would be involved in a trial scheme, where they will be able to keep 100% all business rates raised locally, along with new powers to the police and crime commissioners.
The changes are predicted to raise £250 million a year, but the Local Government Association has said that this is not enough to fix a growing funding gap.
Lord Porter, the Conservative peer who charis the organisation, said, “year of unprecedented central government funding cuts have left many councils beyond the point where council tax income can be expected to plug the growing funding gaps they face.”
The funding gap is expected to reach £5.8 billion by 2020.
Earlier in the year, Philip Hammond’s Budget announced that councils will be able to charge double on empty properties, which will affect those with second homes, although it is unclear how many councils will implement this plan.
How will your money be spent?
One of the main reason on the increase in spending is to help solve the country’s current social care problems.
This Christmas, it is estimated that 128,000 children will be homeless, due to a lack of permanent council housing.
Councils will now be given an extra 3% in funding from national government to go specifically towards the care of the elderly.
Some of the money will also go towards plans to increase spending on the police force.
The government has pledged to give an extra £450 million this year to the police, which will be spent on extra firearms, local policing, and counter terrorism.