Average Leeds households could be paying over £2,000 in council tax if new levy is introduced

The Autumn Statement is set to be announced on Thursday, November 17 and big changes to tax have been forecast. One area that may have a huge impact on households is council tax.

It is predicted that the average household may soon be paying over £2,000 as the budget will lay out plans to allow local authorities to increase levies by five per cent.

The reasoning behind this increase is to pay for social care which has taken a hit due to the Covid-19 pandemic and the cost of living crisis.

Currently if a local council wants to raise council tax an “excessive” amount they cannot implement the measure independently, they are required to hold a referendum in their local authority. But a policy change means that councils will be able to raise council tax up to five per cent without a vote.

The increase would see households in Band D paying £100 a year more and Band H £200 more. A rise in council tax will depend on the band that a household is in, the majority of properties in Leeds fall into Band A (141,034 homes) and Band B (77, 488 homes).

Council tax is not the only tax-based change likely to come out of the Autumn Statement, with Chancellor Jeremy Hunt predicted to announce tax rises in the area of £25bn. He is also expected to cut funding by around £35 billion to help ease the current financial burden.

The Chancellor told Sky News: “We will be asking everyone for sacrifices. But in a fair society, as we are in the UK, there is only so much you can ask from people on the lowest incomes.”

The Yorkshire Evening Post asked its readers what they think of the proposed increase in council tax.

Many people, including reader Karen Harrison, are against the proposed tax rise. She said: “Where does the prime minister think people are going to get all this money from to pay council tax from? I’m self employed and I cannot go on strike for more money.”

Maria Lee agreed, writing: “This is disgusting, people are only just surviving now, how does this billionaire expect people to find the extra money?”

The cost of living crisis is at the forefront of many people's minds who do not know how they will pay for a tax rise.

Laura Massie said: “So when people are struggling the most council tax will go up but services will be cut? This is a kick in the teeth for the average Joe.”

Lora Stephenson commented: “I feel like all I am doing is working to pay the ever rising bills.”

Arlene Morley said that she wouldn’t mind the rise if her local council spent it in the right way. She said: “It wouldn’t be too bad if you got something for it, services are almost non existent and bins are only emptied twice a month.”