Labour faces a costly tax promise as council tax take poised to rise, figures show

pNew financial projections have sharpened the political disconnect between Labour’s drive for fiscal devolution and the daily burden on households, with national council tax receipts in England forecast to climb by about £18 billion by the end of the decade. The figures, based on Treasury assessments circulated to the Office for Budget Responsibility, indicate a 43 per cent increase in the council tax take from £41.2 billion in 2024/25 to £58.8 billion in 2030/31, a trajectory described by critics as a direct consequence of devolved powers granted to regional authorities under Labour’s plans. The resulting impact on households would be substantial, with the average Band D bill forecast to rise from around £2,280 in 2025/26 to about £2,836 by 2030/31, a year on year uplift of roughly £556 in an environment where price pressures remain stubbornly high. The scale of the anticipated rise is set against the backdrop of a cost of living crisis that continues to squeeze family budgets and business balance sheets alike.