Households could face massive hikes in council tax under a plan understood to be under consideration by Rishi Sunak and chancellor Jeremy Hunt as they struggle to fill a £60bn black hole in the government finances.
Ministers are said to be “thinking the unthinkable” as they try to find a way to balance the books in Mr Hunt’s crucial 17 November Autumn Statement, which is expected to set out an austerity package of spending cuts and tax rises.
With expectations high that they will increase welfare benefits and pensions in line with inflation at a cost of £11bn, the prime minister and chancellor are reportedly looking at a range of tax increases.
