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First tax rise of Budget Day

In Gordon Brown’s first Budget Day tax rise, council tax bills in England will rise by £25 on Band D bills this year, taking council tax bills to a massive £120 a month for a typical home. This comes as workers face pay freezes or pay cuts, and pensioners have suffered from lower income from their savings.

  • Council tax bills in England are now a record £1,439 a year on an average Band D home from April. Bills have more than doubled under Labour (+109%).
  • Labour claim that this is a low rise – yet they fail to mention that this year’s rise compounds previous above-inflation hikes. This year’s rise is £25 on a Band D home, pushing the average bill to a record £120 a month on Band D.
  • By contrast, Scotland is benefiting from yet another council tax freeze this year, meaning bills are almost £300 a year less on a comparative Band D home north of the border.
  • A Conservative Government would work with councils to follow the example of Scotland, providing additional central funding to help councils freeze council tax, such as by cutting government
    advertising and consultants. The Government is now the biggest advertiser in the country. Labour Ministers have explicitly refused to adopt such a policy in England.
  • Labour Party documents are calling for a council tax revaluation and re-banding after the election. In the Welsh revaluation in 2005, four times as many homes moved up one or more bands as down; moving a Band D home up a band means an automatic 22 per cent hike in bills.

Shadow Secretary of State for Communities and  Local Government, Caroline Spelman says:

“This is Gordon Brown’s first tax rise of Budget Day. Under his watch, council tax bills have doubled while frontline services like weekly bin collections have halved. You pay more and get less under Labour. This year’s rise of £25 compounds the hikes of previous years, pushing bills up to a massive £120 a month.

“A fourth term Labour Government will make further cuts by imposing fortnightly collections for all and hike bills even more through an intrusive council tax revaluation. As Scotland enjoys yet another council tax freeze, hard-working families and pensioners in England now face crippling council tax bills. Only a Conservative Government will work with councils to freeze council tax bills south of the border.”


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