Rishi Sunak set to increase Council Tax by five percent – how Britons will be affected

Rishi Sunak has been tasked with leading the UK’s economic response to the COVID-19 crisis, and has unveiled a package of support. However, the Chancellor has also made tough decisions in various aspects, which are likely to have a palpable impact on the everyday lives of Britons. One such decision relates to Council Tax, with people potentially facing a rise in their bill next year. 

“So council taxes will rise to meet these costs.

“The Chancellor has recognised that imposing more tax rises now, which would eat into disposable income at a time when the economy needs discretionary spending and investment to help nurse it back to health, would not be prudent.”

However, the Spending Review also outlined that action has already been taken to help certain people with their Council Tax bills.

This year, the government established a hardship fund to help discount Council Tax for all working age local Council Tax Support claimants.

It stated local authorities would be provided with £670million of additional grant funding in order to assist them in supporting more than four million households able to afford council tax payments.

The report added: “The government expects to provide an estimated £762million to compensate local authorities for 75 percent of irrecoverable loss of council tax and business rates revenues in 2020-21.”

If a person wishes to calculate how much they will pay in Council Tax, they are required to have certain information to hand.

They will need to know the valuation band for their home in England and Wales or in Scotland, as well as how much a local council charges for that band.

Britons are usually required to pay Council Tax if they are 18 or over, and own or rent a home.

A full bill is based on at least two adults occupying a home together. 

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