Full list of areas facing bumper council tax hikes – including UK’s biggest EVER increase where bills could rise 160%

RESIDENTS in six areas could be hit with the largest council tax increases ever seen, with some facing bill hikes of £800 a year. Six cash-strapped councils are said to be considering the major increases, which could be as much as 160%. Massive council tax increases could be imposed in six local areas in England Credit: PA Some councillors claim their funding has been slashed by the Labour Government and has left them with a choice to either cut services or raise taxes. The six councils are Wandsworth, Westminster, Kensington and Chelsea, Hammersmith and Fulham, City of London, and Windsor and Maidenhead. Sign up for the Money newsletter Thank you! Council tax is collected by local authorities to pay for public services such as bin collections, road maintenance, policing and social care. It goes up every year on April 1, but councils normally have tax rises capped at 5%, unless they hold a local referendum. But the Government has granted special exemptions to these six local authorities to raise rates beyond the threshold for the next two years. That’s because these councils have historically had lower bills, but changes to central government funding mean they’re facing a severe budget shortfall. Conservative-held Wandsworth Council is reportedly discussing whether to raise council tax by up to 160% in April next year. This would cost an extra £800 a year for residents in average Band D properties in the borough. Most read in Money The average Band D resident in Wandsworth currently pays the lowest council tax in England at £1,020 a year. Residents in other boroughs pay over double that – such as in Pendle, Lancashire, where those in similar properties pay roughly £2,500. Roughly half of the amount currently paid by Wandsworth residents is the council element, while the other half is a charge set by Greater London Authority (GLA). Increasing the council element by 160% would raise council tax to £1,834 a year. No firm decision appears to have been made yet. Meanwhile Westminster Council is considering a rise of 100%, which would hike the average bill by more than £500 a year. Currently, Band D residents pay £1,047 a year. The council has written to 200,000 residents as it plans next year’s budget, asking residents what services it should cut if nothing is done to curb spending. It’s not yet known how much the other four councils are considering raising the tax by. Each of the six councils say they are facing significant budget shortfalls after Housing Secretary Angela Rayner changed how Whitehall funding is divided up between local authorities. Labour’s Fairer Funding Review was brought in to get more cash to areas with higher needs. It gives more weight to areas with higher deprivation levels, as well as a council’s ability to raise money itself. The review has meant councils in wealthier areas, including Kensington and Chelsea, Hammersmith and Fulham, Wandsworth, Westminster and the City of London, as well as Windsor and Maidenhead, will see larger cuts. However each has been made exempt from the 5% cap on raising council tax to make up for it. Conservative councillor Peter Graham, deputy leader of Wandsworth, said his council was facing a budget shortfall of £137million. He blamed the funding cuts as well as the “budget hole” he claimed had been left by the previous Labour administration. However Wandsworth’s Labour leader Simon Hogg said it “beggars belief that Wandsworth Conservatives are planning Britain’s biggest ever council tax increase”. It’s not clear yet whether any other councils across the country will be given permission to raise taxes above the 5% cap. Formal Government approval is likely to be settled at the end of this year. Last year, Worcestershire Council was given special permission to hike bills by 9% following funding shortfalls. The year before, Newham set a London record by increasing payments by 8%. Comment now