In yet another sign of political backtracking, councils across the UK are pushing council tax hikes to their legal limits—some even declaring effective bankruptcy to justify increases as high as 25%. This has sparked outrage among taxpayers, particularly given Keir Starmer’s previous pledge that there would be “Not a penny more on your Council Tax.”
With this stark contrast between promise and policy, it raises serious questions: Was Starmer’s commitment to freezing council tax misinformation—a mistake—or disinformation, an intentional deception?
Councils Going Bankrupt and the Taxpayer Footing the Bill
In recent months, multiple councils—including Birmingham, Woking, and Croydon—have effectively gone bankrupt under Section 114 notices. This means they can no longer balance their books, forcing drastic cuts to services and justifying tax increases well above the usual 5% cap.
Some of the worst-hit areas include:
- Birmingham City Council – Facing a 21% council tax increase after financial collapse.
- Woking Borough Council – A 25% increase due to reckless financial management.
- Slough and Thurrock Councils – Declared bankruptcy and are enforcing major tax hikes.
A Pattern of Broken Promises
Starmer’s council tax promise joins a long list of Labour U-turns:
- Nationalization – Promised but abandoned.
- Tuition Fees – Once pledged to scrap them, now reversed.
- Wealth Tax – Labour’s stance on taxing the ultra-rich has disappeared.
A Real Alternative: Reform UK’s Pledge for Lower Taxes
Amid these betrayals, Reform UK is positioning itself as the only party committed to reducing tax burdens on working-class and middle-income families. Their bold stance on council tax reform includes:
- Cutting wasteful council spending instead of raising taxes.
- Full audits of council finances to expose financial mismanagement.
- Holding leadership accountable for economic failures.
Sources
- The Times: Councils Facing £30bn Debt Crisis
- House of Commons Library: Why Are Councils Going Bankrupt?
- CNN: UK Council Bankruptcies
- BBC: Why Councils Are Going Bust
- Yahoo News: Starmer’s Council Tax Promise
- GB News: Starmer’s Tax U-Turn
- The Guardian: Labour Confirms Tax Cap