Treasury forecasts indicate that council tax receipts could rise by 43% to £58.8bn by 2030/31, prompting Conservative claims that average band D bills could increase by about £556. The figures have intensified political disagreement over local taxation and planned devolution, though the government says no future council tax rates have been set.

Councils collected £41.2bn in council tax in 2024/25; the forecast implies a £17bn increase over five years. Sir James Cleverly argued Labour had effectively built rises into its plans and warned that greater fiscal powers for mayors could increase bills, while Louise Haigh dismissed this as “nonsense” and ministers stressed that councils set their own rates. The government’s proposals would let mayors retain shares of locally raised income tax and business rates without changing taxpayers’ income-tax rates, alongside an equalisation system for lower-revenue areas.