People in Milton Keynes could face whopping 10% council tax rise next year

Households all over Milton Keynes could well face a council tax rise of 10% next April, our council leader has warned.

This would mean an increase of £146 for the average Band D household in the borough.

The news was revealed today by the Labour leader of MK Council, Cllr Pete Marland.

He said the Conservative-led Local Government Association (LGA) has highlighted that after 11 years of austerity local councils face an £8bn black hole in their finances by 2024/25 just to continue delivering existing vital services.

Since then the government has announced reforms to social care that will introduce a 1.25% Social Care Levy on wages, on top of income tax and national insurance.

Most of the revenue raised from the new tax will be channelled to the NHS. While some of the cash will be given to local councils, most estimates are that the funding will not cover the full costs of the changes that will introduce a cap on life-time care costs, said Pete.

"The extra expense to cover those costs will fall on already cash-strapped councils," he said,

A government Minister has now confirmed that the LGA and other independent research is correct and has said that the funding shortfall is likely to be made up by the need to raise council tax.

Gillian Keegan MP, the new Minister for Social Care, this week said at the Conservative Party Conference that large council tax rises are “indicative” of the direction of travel the government is taking to plug the finance gap.

The Tory-led LGA is predicting an average need for a 9% council tax rise, while other reports claim the basic council tax increase threshold may rise to 4% with an additional 6% adult social care precept meaning a combined increase of council tax of up to 10% may be on the cards.

Milton Keynes has one of the lowest council tax charges in the country with a Band D charge of £1,465.59 which is on average £150 cheaper than neighbouring Conservative authorities in Northamptonshire, Buckinghamshire and Central Bedfordshire.

Pete said: “Local hard-working families are being hit by tax rises again and again by this Conservative government. Now the signal is that the Tories are planning to hit them again.”

He added: “Last year, Milton Keynes saw the lowest council tax increase for five years while neighbouring Tory-run councils increased theirs by the maximum amount. Unfortunately, the demand for social care is rising. The Conservatives have already dipped into the pockets of local people by putting up tax on their wages with a new Social Care National Insurance Levy, but even the Tory-led LGA and a government Minister admit that it won’t fund social care costs.

“The current Conservative government’s tax bill means the personal tax burden on workers is higher today than under any government since World War Two...Labour is the party of low tax and value for money in Milton Keynes - but unless things change, the Tories are planning another raid on hardworking family’s finances.”

Currently the average Band D bill is made up of £1,465.59 for Milton Keynes Council, £231.28 for the Police and Crime Commissioner for Thames Valley, £67.16 for Bucks & MK Fire Authority and an average of £105,15 for parish councils. This totals £1,869.18.