Average council tax bill is set to hit £3,000 in just five years, warn Tories

Millions of households will face £3,000-a-year council tax bills in just five years under a £16billion raid by Labour. 

Despite vowing to give hard-pressed families 'breathing space' on the cost of living, Prime Minister Andy Burnham will instead preside over a fresh cash grab, the Mail can reveal. 

Official figures released alongside the Budget suggest council tax receipts are set to jump from £54billion in 2026-27 to £70billion by 2031-32. 

It means the average band D property will be paying £2,958 in council tax by 2031-32 – up from £2,391 this year, according to analysis by the Conservative Party for this newspaper.

The Tories said the hike undermines the £100 council tax giveaway announced by Chancellor John Healey, which 'won't touch the sides' of the rise.

But households could face an even bigger bill if councils opt for higher rises than the Office for Budget Responsibility (OBR) estimated in its economic forecast.

Official figures released alongside the Budget suggest council tax receipts are set to jump from £54billion in 2026-27 to £70billion by 2031-32

Official figures released alongside the Budget suggest council tax receipts are set to jump from £54billion in 2026-27 to £70billion by 2031-32

Council tax can increase by up to 5 per cent each year without a local referendum, but the OBR forecast – published alongside the Budget – assumes bills will rise by 4.4 per cent and 4.3 per cent over the coming years.

The OBR said: 'Council tax receipts are expected to raise £54billion in 2026-27, a 7 per cent increase from 2025-26 driven largely by increases in the rates of council tax in England, Scotland and Wales.

'Receipts are then forecast to rise to £70billion by 2031-32 as both council tax rates and the number of households are assumed to grow.'

Analysis of the figures by the Tories estimated that council tax bills for an average band D property would rise by almost £600 over the same period.

Conservative housing spokesman Katie Lam told the Mail: 'This is a council tax bombshell courtesy of Andy Burnham. Labour's £100 handout won't touch the sides when people across the country are facing bills that are rising by far more.

'This is a classic example of giving with one hand while taking with the other.

'With council tax bills soaring to record levels, it's a complete insult that Labour are trying to pass off this meagre offering as genuine help to people who are being left with less and less at the end of every month.'

John O'Connell, chief executive of the TaxPayers' Alliance, added: 'Families around the country will struggle with this huge hike to their biggest cost of living – tax.' 

A Ministry of Housing, Communities and Local Government spokesman said: 'This is an OBR forecast – decisions on whether to increase council tax in England are made annually and are ultimately for local authorities, and we expect them to put taxpayers first.'

Original source Average council tax bill is set to hit £3,000 in just five years, warn Tories

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