The UK government has released new figures projecting a significant rise in council tax bills over the next decade, sparking debate over proposed devolution plans and their potential impact on local taxation. The data, published in response to a parliamentary question from Conservative shadow secretary for local government Sir James Cleverly, suggests that by 2031, an average Band D council tax bill could increase by approximately £556 annually.

Sir James Cleverly criticized Labour’s approach, accusing the party of embedding substantial tax increases into future budgets. He further warned that proposals supported by Labour mayor Andy Burnham, aimed at devolving fiscal powers to regional mayors, could lead to further tax hikes. “Labour have already baked in £18 billion of council tax rises. And now former Manchester mayor Burnham wants to go further and impose his high-tax regional model across England,” Cleverly said, arguing that the Conservative Party alone prioritizes local democracy while controlling tax levels.

Andy Burnham, the mayor of Greater Manchester, has acknowledged the challenges ahead regarding council tax, describing the situation as requiring “big decisions.” While he has expressed support for reforming the local taxation system, Labour officials have denied claims of a planned £17 billion increase in council tax revenue. Burnham also announced that English mayors would be granted the ability to retain a share of the income tax and business rates collected in their regions, a move viewed as part of broader decentralization efforts.

Prime Minister Rishi Sunak has defended the reforms, stating that allowing mayors to keep a portion of income tax and business rates revenue fulfills his commitment to devolving power away from Westminster into local communities. The government emphasized that the overall rate of income tax paid by individuals will remain unchanged, and a financial equalization system will persist to ensure that less affluent areas continue to receive necessary support.

Currently, several English regions, including Greater Manchester, the Liverpool City Region, Cambridgeshire, and South Yorkshire, are led by elected mayors. Other regions such as Greater Essex, Hampshire, and the Solent are scheduled to elect mayors for the first time in the near future.

The Labour Party rejected Conservative accusations regarding council tax rises. Louise Haigh, Labour’s first secretary of state, labeled the claims as “nonsense,” insisting no concrete plans for significant tax increases have been made by councils. A spokesperson from the Ministry of Housing, Local Government and Communities stated that councils had not yet set tax rates beyond the current year, underscoring that individual local authorities are responsible for determining council tax levels based on local circumstances, with consideration for the impact on taxpayers.

The debate highlights ongoing tensions over local government funding, taxation, and the balance of power between central government and regional authorities as England moves toward expanded mayoral governance.