Households in rural areas will see their money flow “to other parts of the country”.
Angela Rayner is to hit middle class families with the highest possible increases (Image: Getty)
Rural middle-class families will be hit by the highest possible increases in council taxes under Angela Rayner’s plans to funnel more money to deprived regions. This means that historically Tory leafy towns and villages could face paying an eyewatering £376 more in council tax.
Last night, Conservative leader Kemi Badenoch branded it a “spiteful” move that will push more cash into traditional Labour areas. According to the County Councils Network (CCN) Brits in Surrey and the Home Counties will “foot the bill” for a planned overhaul of local finances. The plan seemingly favours Labour-led towns and cities while countryside communities are left struggling with real-terms cuts.
Leafy households will see no increase in funding but instead money will flow to other areas (Image: Getty)
CCN, which represents local authorities outside of big cities, say a family in a band D countryside household will see their annual council tax bills rise to £2,756 by 2029, up from £2,380 today. Analysis found that these authorities will lose nearly half a billion pounds in Government cash over the next three years thanks to Ms Rayner.
This means sixteen authorities will be forced to cut vital services and hike bills for cash-strapped Brits by the maximum 5% allowed, says CNN. These authorities include Central Bedfordshire, Cumberland, Devon, East Riding of Yorkshire, East Sussex, Hampshire, Herefordshire, Hertfordshire, Oxfordshire, Shropshire, West Northamptonshire, West Sussex, and Wiltshire.
Only one of the councils is currently under Labour control, with most run by either Conservatives or Liberal Democrats.
Tim Oliver, leader of the council and chairman of the CCN, said: “Surrey county council will lose something in the region of £160m of funding over three years.
“Our residents will pay the highest level of council tax but we’ll see no increase in our funding over the next three years. That is going to put real pressure on services.
“In the meantime, money is flowing out of Surrey to other parts of the country.”
It is part of Angela Rayner’s plan that households in middle-class areas pay more in council tax to help fund services in poorer neighbourhoods. Therefore rural middle-class families in the south face deep cuts to their budgets under the reforms being brought in by the Deputy Prime Minister.
By contrast, those in the Midlands and North can expect to see large increases, as ministers seek to address perceived unfairness in funding levels across the country.
Surrey county council will lose something in the region of £160m in funding (Image: Getty)
Steven Broadbent, Conservative leader of Buckinghamshire Council, said his local residents will be “appalled” at the prospect of 5% tax rises.
“It’s just not sustainable, it’s not fair,” he said, adding that he fears the Government has “cynically” targeted local authorities more likely to be run by other parties for funding cuts.
“Those controlled by Labour are not being hit by the same pressures, generally speaking,” he added. “Whether it was politically motivated or not, it will push more and more councils towards the cliff edge of a section 114 notice [of effective bankruptcy].”
Kemi Badenoch said: “Yet again the Labour Government are showing utter contempt for people living in rural Britain.
“This latest spiteful change will steal more money out of the hands of county councils and send it straight into Labour-run urban areas. Only the Conservatives are serious about standing up for our rural communities.”
Richard Tice, the deputy leader of Reform UK, added: “It’s no surprise that Ms Rayner’s trying to gerrymander council tax but the truth is that councils across the country are spending money very badly and they don’t need more money, they need to stop wasting it and get better value for money on what they’re spending.”
A spokesman for Ms Rayner’s department said: “We do not recognise this analysis. The current, outdated way in which local authorities are funded has left communities behind and damaged local services.
“This must change and is why we are taking decisive action as part of our Plan for Change to reform the funding system so we can improve public services, while maintaining the previous government’s referendum threshold on council tax rises so taxpayers have the final say and are protected from excessive increases.”
