Councils are begging Rachel Reeves for the power to implement unlimited tax hikes ahead of the next Budget – alongside the option to kill off the single person discount.
The Local Government Association (LGA) has urged the Chancellor to scrap the five per cent yearly tax rise cap – which currently limits hikes without a referendum.
Senior government sources have insisted to The Telegraph that they have ‘no plans’ to follow through on the group’s hopes – but the association said that the extreme measures are desperately needed for councils facing a £6billion funding gap.
The single person discount gives people who live on their own a 25 per cent discount on their council tax bill, which local authorities say could free up £3billion a year.
Cllr Pete Marland, chair of the LGA’s economy and resources board, told the broadsheet: ‘It should be for councils and their residents to decide how are paid for, not Whitehall.
The Local Government Association (LGA) has urged the Chancellor (pictured) to scrap the five per cent yearly tax rise cap – which currently limits hikes without a referendum
Senior government sources have insisted to The Telegraph that they have ‘no plans’ to follow through on the group’s hopes – but the association said that the extreme measures are desperately needed for councils facing a £6billion funding gap
‘No other tax increase is subject to the extra cost of a referendum, as all other taxes are rightly seen to be within the mandate of the elected government. The same should apply for council tax. The ballot box on local election day allows for people to pass judgement on their councils.’
Ministers have previously failed to rule out council tax reforms, with housing minister Jim McMahon saying that ‘future local authority funding decisions will be a matter for the next Spending Review and Local Government Finance Settlement in which we are engaged.’
It comes as the Prime Minister has warned the country that the looming Budget will be ‘painful’, urging people to accept ‘short-term pain’ for ‘long-term good’.
His remarks were seen as a further sign that he is rolling the pitch for Reeves to unveil a swathe of tax rises and public service cuts as she seeks to balance the books.
But Labour’s leader and Chancellor have been accused of plotting a tax raid on the middle class as Sir Keir said those with ‘broadest shoulders’ should bear the brunt.
He claims tough decisions are required after discovering an unexpected £22billion ‘black hole’ in the public finances following the General Election.
However, Sir Keir has been accused of ‘breaking his promise’ after insisting on the campaign trail that he would not increase levies on working people.
Tories have slammed the possibility of possible change, with shadow housing minister David Simmonds saying they are ‘leaving the door open open to hiking council tax by stealth.’
It comes as the Prime Minister has warned the country that the looming Budget will be ‘painful’, urging people to accept ‘short-term pain’ for ‘long-term good’
He told The Telegraph: ‘It’s about time Labour came clean about what their true intentions are: increasing council tax through the back door to foot the bill for inflation-busting public sector pay rises.’
The Prime Minister said he was ‘not going to pre-empt the Budget’ when pressed on what tax rises and spending decisions the Government is considering to announce on October 30, although he reiterated his pledge on the ‘triple lock for working people’.
A Treasury spokesman said: ‘Following the spending audit, the Chancellor has been clear that difficult decisions lie ahead on spending, welfare and tax to fix the foundations of our economy and address the £22 billion hole in the public finances left by the last government.
‘Decisions on how to do that will be taken at the Budget in the round.’