Budget Responsibility (OBR) announced that councils would increase the charge by £1.8 billion next month after the Government approved hikes of up to 5%.
Changes to council tax are linked to last year’s autumn spending review where the Chancellor gave local councils the ability to increase the levy by the maximum amount if they chose to, reports The Mirror.Usually, authorities can only put up local taxes by no more than 2% without hosting a referendum with local people.But, the OBR estimates that two thirds of councils will now put taxes up by the new maximum of 4.99%.That means that band D properties will see increases of between £50 and £100.The OBR said that the decisions means it has had to more than double its estimate of the increase.
Read more on dailystar.co.uk