That’s All We Need! Council Tax Bills Could Jump, on Top of National Insurance, Energy Hikes

The Conservative Party raised National Insurance by 1.25 percent earlier this month, on top of rising energy bills. A £20-a-week universal credit increase also stopped functioning on Wednesday.

Council tax bills in England could go up by £220 a year over the next three years, according to the Institute for Fiscal Studies.

The prediction from one of Britain’s most respected think tanks comes as 15 million households in England, Wales, and Scotland face a 12 percent increase in energy bills due to a sharp rise in the wholesale price of gas.

Anita Dougall, the chief executive of Sagacity data firm, told the Guardian: “The number of people struggling to pay their energy bills is going to shoot up this winter.”

The latest bad news for householders in England is the predicted rise in council tax - a charge which local authorities make to pay for services like refuse collection, roads, education and social services.

Energy bills are set to soar by hundreds of pounds next year.

Meanwhile, Universal Credit has been cut by £20 a week, National Insurance contributions are up and council tax is likely to rise.

This isn't just a winter of discontent - it's years of misery under this government.

— Nadia Whittome MP (@NadiaWhittomeMP) October 7, 2021

Labour MP Nadia Whittome tweeted: “This isn't just a winter of discontent - it's years of misery under this government.”

The IFS said: “The COVID-19 pandemic is likely to continue to affect councils’ spending and income-generating capacity over the next few years. Even as these pressures abate, councils will still face underlying growth in service demands and costs.”

They estimated councils in England would need to increase revenues by £10 billion by 2024–25 to “maintain service levels”.

The IFS went on to estimate council tax would have to go up by 3.6 percent a year to keep local authorities from going bust, which would increase the average council tax bill by £160 a year.

But they went on to say that “extra cost pressures” were more likely to mean council tax would go up by £220 a year by 2024-25.