Overview

This bill seeks to remove existing restrictions on how much council tax principal local authorities in England can charge. It would allow them to set council tax levels freely, eliminating the need for referendums on significant increases.

Description

The Local Authorities (Removal of Council Tax Restrictions) Bill aims to give principal local authorities in England complete control over council tax levels. Currently, there are limits on how much council tax can be increased without holding a local referendum. This bill:

• Removes Restrictions: Allows local authorities to set council tax at any level they choose.
• Repeals Referendum Requirements: Eliminates the requirement for referendums on council tax increases, removing Chapter IVZA of Part 1 of the Local Government Finance Act 1992 and Schedule 6 of the Localism Act 2011.
• Extent and Commencement: Applies to England and Wales and comes into effect immediately upon passage.

Government Spending

The bill's impact on government spending is indirect. While it doesn't directly allocate or reduce funds, it could lead to increased council tax revenue for some local authorities, potentially lessening reliance on central government grants. However, it could also lead to higher tax burdens for residents in some areas. No specific figures on the impact on government spending are provided in the bill itself.

Groups Affected

• Local Authorities in England: These will gain greater autonomy in setting council tax levels, potentially leading to increased income or the ability to fund services more effectively, but also greater financial responsibility and potentially facing public backlash if they significantly raise taxes.
• Council Tax Payers in England: Could experience either increases or decreases in council tax depending on the decisions of their local authority. Some may benefit from more funding for local services while others may see increased tax bills.
• Local Government Finance Bodies: These will need to adjust their operations to accommodate the changes introduced by the bill.

Powered by nyModel