For immediate release
Local taxpayers in Nottingham and Birmingham face council tax rises of as much as 15 per cent, amounting to an increase of £362 for band D properties in Nottingham, and £286 for band D properties in Birmingham, according to the TaxPayers’ Alliance (TPA) campaign group.
A new briefing by the TPA looks at what would happen to council tax in both areas if the government allows each council to hike rates by 10 per cent or 15 per cent, after both issued Section 114 notices, effective declarations of bankruptcy. For the current financial year, Slough and Thurrock councils were given special dispensation to raise rates by 10 per cent, with Croydon council allowed to raise rates by 15 per cent, after all three issued Section 114 notices. Normally, there is a cap of 5 per cent which can only be exceeded with a referendum.
The maximum possible increase in each area if a 15 per cent increase were applied would be £723 in Nottingham and £571 in Birmingham.
CLICK HERE TO READ THE BRIEFING
Nottingham City Council
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The average band D council tax for Nottingham city council in 2023-24 was £2,412. If council tax were to increase by the normal maximum level of 5 per cent without holding a referendum, it would increase the average band D council tax by £120.
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If council tax for Nottingham city council were to rise by 10 per cent it would increase the average band D council tax by £241, a difference of £121 compared to a 5 per cent increase.
- If council tax for Nottingham city council were to rise by 15 per cent it would increase the average band D council tax by £362, a difference of £242 compared to a 5 per cent increase.
Birmingham City Council
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The average band D council tax for Birmingham city council in 2023-24 was £1,906. If council tax were to increase by 5 per cent it would increase the average band D council tax by £95.
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If council tax for Birmingham city council were to rise by 10 per cent it would increase the average band D council tax by £190, a difference of £95 compared to a 5 per cent increase.
- If council tax for Birmingham city council were to rise by 15 per cent it would increase the average band D council tax by £286, a difference of £191 compared to a 5 per cent increase.
CLICK HERE TO READ THE BRIEFING
John O’Connell, chief executive of the TaxPayers' Alliance, said:
"Residents will be rightly fearing the worst after their council’s finances collapsed.
“Local taxpayers rightly worry they will have to pick up the tab for years of shocking mismanagement and risk-taking by town hall bosses.
“Urgent action will be needed to limit the damage and avoid placing all the burden on household budgets.”
TPA spokespeople are available for live and pre-recorded broadcast interviews via 07795 084 113 (no texts)
Media contact:
Elliot Keck
Head of Campaigns, TaxPayers' Alliance
24-hour media hotline: 07795 084 113 (no texts)
Notes to editors:
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Founded in 2004 by Matthew Elliott and Andrew Allum, the TaxPayers' Alliance (TPA) campaigns to reform taxes and public services, cut waste and speak up for British taxpayers. Find out more at www.taxpayersalliance.com.
- TaxPayers' Alliance's advisory council.