HOUSEHOLDS will see their council tax rise in just weeks – but how much more will you need to pay?
Local authorities in England and Wales are set to hike the tax by the maximum amount in April.
The increase is the largest amount allowed by the government without having to hold a local referendum.
Out of the 136 authorities that have already announced their council tax proposals, 128 (94%) will be increasing bills in April by 4.99%.
But what does this mean for you and your household budget?
We explain exactly how much your council tax is set to rise and other important details you need to know.
Council tax is set to rise for residents of 136 local authorities across England and Wales.
The rise of 4.99% is the maximum increase that can be implemented without having a local referendum and millions of households will be affected.
The 5% rise equates to £103.25 extra a year for a typical Band D property, which is currently paying £2,065.
However, The Sun revealed earlier this month that certain areas have been handed special permission to hike bills by 10%, so the same annual bill could increase by £206.50.
It is important to note that the exact amount you will pay also depends on which council tax “band” your property falls under.
Bands are based on your home’s value – the more expensive the property, the more council tax will be charged.
Council tax prices are rising because of the financial pressures that local authorities are under.
Sam Corcoran, vice-chairman of the County Councils Network (CCN), said that some councils have had to make some of their “toughest decisions” because of increased costs and spikes in demand for social care services.
He added that “county authorities face a £1.1billion budget shortfall over the next two years”.
Some councils are in such a desperate situation that they have been granted permission for additional rises above the 4.99%.
Councils in Thurrock, Woking, Slough and Birmingham all have been given special permission to increase council tax even higher due to the state of their financial position.
Mr Corcoran added: “The next Government must set out a long-term funding plan for councils while also undertaking a comprehensive reform programme to help drive down costs, especially for children’s services and home-to-school transport.”
Council tax pays for local services such as schools, rubbish and recycling collection and street repairs.
Costs can vary dramatically depending on which council you come under, with residents in some areas paying twice as much as other households each year.
As well as helping to provide funding for local services, the money also pays for police and fire services and funding for special projects.
Upkeep of public services such as libraries and also educational services are also funded by council tax.
Council tax bands are based on how much your property is worth.
Band A represents the lowest value home, while band H in England and Scotland and band I in Wales represent the highest value.
You can check your council tax band by entering your postcode on the government’s website.
Once you know this you will be able to work out how much the increase will cost you.
You will be sent a council tax bill in April outlining how much you need to pay, but it is good to have an idea yourself ahead of this.
Households can choose to make payments over ten months.
You can also opt to pay instalments over 12 months if you prefer.
You can check that you are paying the right amount by checking what band your property falls under.
If you think you might be in the wrong band and paying too much you can challenge your council tax band.
The council tax bands were created based on property values back in 1991, so many households may find that based on today’s prices, they should be in a different band.
When you know what band your property comes under you can check what other properties in your street come under.
If they are in a lower band than you are, you could successfully make a challenge and get yours lowered.
Meanwhile, we explain how you can get your council tax reduced or even wiped out completely.
