Taxpayers in Liverpool should expect to see rises for council tax and National Insurance bills in the new year, while income tax is frozen.
There is good news however as the upcoming increase is much lower than last year's proposed council tax rise, when Chancellor Rishi Sunak confirmed local authorities would be able to raise their council tax by 5% in 2021 without a local referendum.
The Autumn Budget and Spending Review 2021 stated council tax limits for 2022-23 to 2024-25 could be increased by as much as 2%.
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Liverpool City Council has already seen its funding reduced by around 65% since 2010, with spending now £465 million a year less than a decade ago.
In a budget proposal released in November, where ideas were drawn up to help bridge the £34m gap in the 2022/23 budget, it was assumed council tax in the city would rise by the maximum allowed, expected to be 3%.
Any local authorities with social care responsibilities are expected to be able to increase the adult social care precept by up to 1% per year.
Parish councils may be able to put through larger bill increases without the need for a referendum.
The small print admits the final rises councils can impose will only be confirmed later by Michael Gove ’s Department for Levelling Up, Housing and Communities.
And the office for Budget Responsibility (OBR) warns they could go high. The watchdog says it “expects” net council tax receipts to keep rising by 6% a year for years to come.
Council Tax receipts have been tipped to soar from £38.4bn this year to £48.4bn by 2026/27, which is equivalent to around £435 extra per household.
How much will council tax be in Liverpool next year?
Here is an estimate of how much council tax could be in the next financial year if the council lifts it by the maximum of 3%.
Band A (House value up to £40,000)
Currently – £1,419.67
With a 3% rise – £1,462.26
Band B (House value over £40,000 and up to £52,000)
Currently – £1,656.27
With a 3% rise – £1,705.95
Band C (House value over £52,000 and up to £68,000)
Currently – £1,892.88
With a 3% rise – £1,949.66
Band D (House value over £68,000 and up to £88,000)
Currently – £2,129.49
With a 3% rise – £2,193.3
Band E (House value over £88,000 and up to £120,000)
Currently – £2,602.71
With a 3% rise – £2,680.79
Band F (House value over £120,000 and up to £160,000)
Currently – £2,928.27
With a 3% rise – £3,016.11
Band G (House value over £160,000 and up to £320,000)
Currently – £3,549.16
With a 3% rise - £3,655.63
