Council Tax: Expert discusses potential rise
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Households face a time of unprecedented cost and economic uncertainty as the world recovers from the worst of COVID-19. Mr Sunak is expected to today announce a range of measures to help Britons ride out the cost of living crisis.
The Chancellor is expected to provide a £150 rebate for those in Council Tax bands A to C, The Times reports.
This will be to assist low income families who will likely be hit hardest by upcoming price increases and tax hikes.
Currently, the cost of living is higher than it ever has been in the last 30 years, with families expecting to fork out an additional £2,000 this year just to keep up with the energy price cap rise.
It is estimated that households will find themselves £3,000 worse off this year in total.
This is mostly due to skyrocketing inflation, which is reported to add £180 annually to grocery bills.
Shortages of workers and post-pandemic nerves have also been seen to get the better of consumers, such as during the fuel shortage last year where thousands flocked to the pumps when there was no need to, increasing the price further.
Alongside all of this, National Insurance hikes will be stealing a sizeable chunk off of the working class paycheques.
As a result of all of these influences battering the low income working class, the council tax rebate is expected to help more than 15 million households.
The poorest households are said to receive the biggest rebates with this alone estimated to cost Treasury £9billion.
Treasury is expected to announce these rebates helping the poorest Britains alongside a package of other measures to help households stay afloat.
Mr Sunak is expected to lay out the incredible “Rebate and Repay” scheme, hoping to put pounds back into households across the country.
It comes as Britons face a quadruple hit of price rises.
- Average gas and electric bills reaching £2,000 a years with the Ofgem price cap increasing
- Interest rates set to double from 0.25 percent to 0.5 percent
- Highest price rises for consumers in nearly a decade
- Petrol prices increasing to record levels.
Good Morning Britain reported that the energy price increases alone will send one in four British households into fuel poverty.
Experts predict that the capped energy tariffs will rise by roughly 50 percent with another rise expected in autumn.
Interest rate rises may appear to be a saving grace however, like with the base rate rise at the end of 2021, this will almost immediately impact mortgage bills while savers wait around to see the effects.
Alongside the council tax rebate expectation, Ministers will be providing billions of pounds worth of loans to energy firms which should be passed on directly to their hardest hit customers.
This has been dubbed the “smoothing” mechanism and will see Britons paying less now only to face huge sums over several years as the loans are paid back.
Mr Sunak is also expected to extend the Warm Homes Discount to help families having to choose between heating and eating.
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