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Evening Standard
Evening Standard
Politics
Rachael Burford

London commuter towns expected to see up to 25% council tax hike in latest cost of living blow

Residents of Windsor and Maidenhead face a huge hike in council tax bills - (Daniel Lynch)

Towns in London’s commuter belt could see council tax increases of up to 25% as local authorities continue to struggle with crippling costs.

Leaders at the Royal Borough of Windsor and Maidenhead said they have inherited a "horror show" of over £230million of debts and would need to significantly hike bills in a bid to avoid going bust.

It means residents could be hit by a 25% council tax rise in April - five times the national average. It will add over £450 to an average household’s annual payment.

Council leader Simon Werner said demanding the extra money from residents may be the only way to stave off effective bankruptcy.

The almost 1.5 million people living under cash-strapped Hampshire County Council face a 15% tax hike this year, which would add about £230 to the bill of a Band D home. It has a £182million deficit to plug.

Residents of Slough, in Berkshire, could see an up to 8% increase in bills.

In London, Newham has requested a 10% rise to help fund the skyrocketing cost of housing homeless families.

Lambeth has applied for exceptional Government support this year, but has not yet revealed whether this will include residents facing higher council tax bills.

Croydon and Havering boroughs have also both asked for government bailouts to balance the books, but leaders there have insisted they will not raise council tax beyond 5% in April.

The town halls are among a growing number to request emergency financial support from central Government as more and more of England’s councils face collapsing under a combined £140billion of debt.

Local authorities can only increase council tax by up to 5% this year without triggering a referendum. But in exceptional circumstances they can apply to central government for permission to raise the extra cash.

Housing Secretary Angela Rayner is expected to confirm or reject local authority requests for exceptional support or above 5% council tax increases by mid February.

A spokesman for the Ministry of Housing, Communities and Local Government said: “No decisions have been made on council tax increases and we will only consider agreeing to requests for rises above 5% in exceptional circumstances, in line with the previous government’s position.

“Councils are ultimately responsible for setting their own council tax, and we will put taxpayers at the forefront of any decision.”

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