Labour's reckless Jobs Tax will risk households being hammered
with over £50 more in council tax, new analysis reveals.
Thanks to Rachel Reeves' Jobs Tax local authorities across
England are facing significant shortfalls.
According to figures from the Local Government Association,
councils are facing a blackhole of £1.2 billion as a result of
the NICs hikes and the government's £515 million in compensation
funding.
This blackhole, shared across the 24.2 million dwellings
currently liable for council tax in England, excluding
exemptions, would see each household's bill rising by £52.
That £1.2 billion blackhole in council budgets is costing local
services.
It could pay for 49,000 new bin men—desperately in parts of the
country such as Labour-run Birmingham where rat infested rubbish
covers the streets.
Or it could have repaired 14 million potholes, saving drivers
from costly repairs and further misery under Labour's
anti-motorist agenda, which research shows are worse in Labour
areas.
Council Tax is already increasing by £109 for a band D average
property.
MP, Leader of the
Conservative Party, said:
"Labour's Jobs Tax risks turning every local council into another
Birmingham.
“This is what happens when Labour set out to punish business.
They don't just hurt CEOs and boardrooms, they hurt ordinary
working people.
“If you want better services and lower taxes, vote
Conservative on 1 May."
MP, Shadow Local
Government Secretary, said:
“Labour's jobs tax will be disastrous for local government, and
local residents.
“With plunging authorities across
the country into a black hole of her own making it is inevitable
councils will shift the pain onto residents with higher council
tax or cut services.
“So once again it is clear that Labour's ideological obsession
with higher taxes will leave local residents paying more and
getting less. When you vote Labour, you get trash, so only a vote
for the Conservatives on 1st May will deliver lower
taxes and better services.”
ENDS
Notes to Editors
-
The Local Government Association has estimated that the
Jobs Tax will leave councils with a £1,251 million
blackhole. The Local Government Association's
impartial local government finance team has found that in total
the Jobs Tax will cost local government in total £1,766
million. This includes £637 million for directly employed staff
and £1,128 million for externally commissioned adult social
care. Labour have only provided £515 million in compensation
for the Jobs Tax leaving councils a blackhole of £1,251 billion
(Local Government Association, 28 November 2024,
link).
-
Under Labour, the average Band D council tax is already
rising by £109. The average Band D council tax set by
local authorities in England for 2025-26 will be £2,280, which
is an increase of £109 or 5.0 per cent on last year (MHCLG,
Council Tax levels set by local authorities in England 2025
to 2026, March 2025, link).
-
There are 24.2 million dwellings liable for council tax
in the UK. There are 24.9 million dwellings liable for
council tax in England, excluding the 748,000 dwellings exempt
from paying council tax leaves 24.152 million dwellings liable.
When calculated with Labour's blackhole for councils, the
average dwelling will have to pay an additional £52 (MHCLG,
Local Authority Council Taxbase in England: 2024, 7
March 2025, link).
-
Labour's additional costs on councils could mean there
being 49,059 less bin men. The cost of hiring a bin
man is on average £25,500 a year and councils could hire 49,000
new bin men for the cost of the national insurance
contributions increase that Labour are imposing on
councils (NationalCareers Service, accessed 1
April 2025, link).
-
Labour's additional costs on councils could cover the
repair of 14 million potholes. Labour's additional
costs to councils including the national insurance hike could
equal the cost of repairing 14,254,786 potholes. The cost of
repairing a pothole is £87.76 (Tarmac, 19 March 2024, link).
