Local authorities facing financial difficulties may now impose higher council tax rises without seeking resident approval through referendums. This change allows for higher annual increases, bypassing the usual 5% limit, under the guise of financial support. The move, however, has raised concerns over democratic accountability and fairness.
Households could face paying more council tax as local authorities struggling financially may now seek higher increases without holding referendums. This follows reforms that allow councils in dire financial situations to impose higher annual rises, bypassing the usual 5% limit. The move has been criticized by the TaxPayers' Alliance for lacking proper democratic accountability. Last year, four councils were allowed to exceed the usual 5% limit, with instances of 10% and 8.5% increases.
The new rules extend this to 19 councils deemed in need of 'exceptional financial support'
Council Tax Financial Support Referendums Local Authorities Tax Increases
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