Tax Calculator: Everything YOU need to know as the cost of living soars | Personal finance | Finance
Council tax increases coupled with a rise in National Insurance, a £693 rise in energy bills, record fuel prices and cuts in real-term benefits and pensions are all hitting Great Britain Brittany, resulting in a worsening cost of living crisis. In some areas council tax is set to rise by up to 4.4%, and more than half of UK households will see a hike of £50 or more.
The average Band D council tax bill in England is already £1,898 a year, up from £1,439 in 2010/11.
Of 151 councils that run social care, research by The Mirror showed 89 were planning increases of 2.99% – the maximum allowed.
another 39 planned to use other allowances to allow for larger increases.
Shaun Davies of the Local Government Association warned that councils faced a “tough choice” between raising bills or cutting services.
READ MORE: Hope for drivers as experts reveal when colossal fuel prices could start falling
Last month, Chancellor of the Exchequer Rishi Sunak announced a £150 direct debit household rebate to support around 20 million households in AD strips with rising bills.
A spokesman for the Department of Leveling, Housing and Communities said: ‘We have given the average working family an extra £1,000 in their pockets this year by increasing Universal Credit and we are giving council tax rebates and energy bills to help with the cost of living.”
Yet think tank Resolution Foundation has reported that a typical family could see their disposable income fall by 4% – the equivalent of £1,000 – over the next year to April 2023.
The poorest households will be the hardest hit by the increase in the cost of living because food and energy expenditures are increasing the most.
Fuel prices have hit record highs amid the Ukraine crisis with the latest figures from Experian Catalist showing prices at 165.89 pence per liter for petrol and 177.34 pence per liter for diesel.
That’s up from just 148.0p and 151.6p a month ago, respectively.
The RAC reports that the cost of filling an average tank of petrol is around £88, while diesel is over £92.
RAC fuel spokesman Simon Williams said drivers “badly need a break from these relentless daily increases”.
He hopes that when wholesale prices start to fall, retailers can pass that reduction on to consumers.
Mr Williams said motorists would urge Mr Sunak to cut fuel taxes or VAT to ease the pressure on the cost of living.
All the changes will be delivered on Wednesday when Mr Sunak delivers the spring statement – an update on the UK economy and a chance to outline policy changes.
A British government spokesperson said work was underway to mitigate the high prices.
Last week they told Reuters: ‘The £12billion of support we’ve already announced to help lower the cost of living includes a fuel tax freeze for the 12th consecutive year – the freeze on longest in British history.”
This means it’s increasingly important to take care of your finances and budget what you spend.
Enter your postcode into our calculator and select your council tax bracket to see your region’s projected increase from April 1, 2022.
Note that the figures only apply to the councils system in England, not Wales, Scotland or Northern Ireland, and all figures are taken from financial reports to Cabinet/Executive meetings and the Plenary Council.