Labour plots £18bn council tax raid
‘Burnham premium’ predicted to increase average bill by £500 by 2030
DANIEL MARTIN
Labour is planning an £18bn tax raid on millions of families across England, it can be revealed.
New figures, seen by The Telegraph, show that the national council tax take is set to increase by 43 per cent by 2030, netting £58.8bn.
The rise would add another £500 to average council tax bills by the end of the decade, despite Andy Burnham’s pledge to make tackling the cost of living his number one priority.
The Conservatives branded the tax raid – which would hit 25.6m homes in England – the “Burnham premium”, claiming it would increase bills “in every postcode”.
They claimed Mr Burnham’s plans to roll out fiscal devolution to mayors could push bills higher still.
The Prime Minister is set to lay out his fiscal devolution plans, first revealed by The Telegraph, on Friday.
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The planned increase in council tax bills would mean people living in average Band D properties would pay £556 more annually by 2030.
In 2025/26, the average Band D household in England paid £2,280 in council tax. Applying the Treasury’s expected annual increases indicates that the rate would rise to £2,836 by 2030/31.
Earlier this week, Mr Burnham had ruled out any suggestion of council tax reform during his premiership.
Sir James Cleverly, the shadow communities secretary, said the Prime Minister’s plans to impose Manchester-style mayors across the country would push the council tax bill even higher.
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The strategic authorities headed by these mayors would be able to add a premium on council tax in the form of precepts.
Since Mr Burnham was elected as Greater Manchester mayor in 2017, the mayoral council tax precept for a Band D property (not including police) has increased by 127 per cent from £68 to £154.
On Friday, Mr Burnham is expected to announce plans to hand mayors billions of pounds of income tax for the first time, as revealed by The Telegraph earlier this month.
The Telegraph: continue reading
(UKR)