Conservative Party leader Kemi Badenoch yesterday pressed Sir Keir Starmer to confirm whether the cap on council tax would be increased or not, with the PM sidestepping the question in the Commons.
Speaking after Prime Minister’s Questions, the prime minister’s press secretary told reporters that “the threshold remains the same”. Under current rules, councils can increase tax rates by up to 5 per cent and require government permission or a referendum to go beyond this figure.
Government statistics show the average band D council tax set by local authorities in England for 2024-25 was £2,171, which represented an increase of £106 or 5.1 per cent on the previous year.
The main inflation figure fell to 1.7 per cent in September although it is expected to rise again towards the end of this year, as energy costs go up over the winter.
Sir Keir accused the Tories of leaving local authorities in an “absolutely catastrophic state” after Ms Badenoch pressed the PM about the government’s funding plans for cash-strapped councils in England.
The Conservatives cited responses to written parliamentary questions in which ministers said estimated core spending power (CSP) for local government will increase from £64.7bn in 2024-25 to £68.4bn in 2025-26, with the party adding the Budget was not providing enough new funding to cover this.
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