Ealing Council Not Ruling Out 5% Tax Hike

Jeremy Hunt's Autumn Statement has given leeway for bigger increases

Ealing Council will make the decision on tax rises early next year
Ealing Council will make the decision on tax rises early next year

November 21, 2022

Ealing Council hasn’t ruled out hiking local council tax rates by 5 per cent following Chancellor Jeremy Hunt’s Autumn Statement last week. Families may be forced to pay hundreds more each year after Jeremy Hunt made it easier for local authorities to raise local taxes.

Councils will be able to increase council tax by as much as five per cent, costing families hundreds of pounds, after Mr Hunt delivered his Autumn Statement in the House of Commons on Thursday, 17 November. Before, councils would have had to hold a referendum to increase council tax by more than three per cent.

Ealing Council has made no decision about increasing council tax for residents next year. A spokesperson said, “Ealing Council will make a decision on council tax in the new year, after carefully considering the implications of both the Autumn Statement and considering the Local Government Finance Settlement (due in December).

“This decision will be considered by Cabinet and Scrutiny in February, before proceeding to Full Council in March. In the meantime, given the impact of rising costs and demand, and the cost-of-living crisis facing residents, we will continue to call for the government to provide sufficient, sustainable funding to local government.”

The Autumn Statement did confirm that benefits and pensions will rise in line with inflation. Mr Hunt added that there would be a rise in the national living wage, plus a 12-month extension to the household support fund.

Social housing rent rises will be capped at seven per cent, and average energy bills are set to increase to £3,000 with a rise in the energy price cap from April.

A recent Ealing Council meeting revealed that the boroughis forecast to go almost £15 million over budget this financial year due to the impact of global inflation and rising demands on adult social care services.

Megan Stanley - Local Democracy Reporter