Average council tax bill ‘to pass £2,000 for first time’ after Autumn Budget

Downing Street to reportedly give councils power to hike rates by nearly 5 per cent

The average council tax bill could rise above £2,000 under government plans being drawn up to help cover the cost of social care, according to reports.

Rishi Sunak and Jeremy Hunt will reportedly allow councils to hike the levy by nearly 5 per cent without the need for a vote.

Under current rules, councils must give residents a say by holding a referendum if they propose tax raises.

The prime minister and chancellor have repeatedly warned of “tough choices” ahead as they seek to repair the public finances following a series of shocks to the economy.

The Covid pandemic, Russia’s ongoing war in Ukraine and former PM Liz Truss’s disastrous mini-Budget earlier this year have left a multi-billion pound black hole in the public finances.

Chancellor Jeremy Hunt and PM Rishi Sunak (Simon Dawson/10 Downing Street)

Mr Hunt will deliver an autumn statement on Thursday, setting out the government’s tax and spending decisions.

According to The Daily Telegraph, the chancellor will set out plans to allow councils to hike taxes by 4.99 per cent, meaning those in Band D will pay up to £100 extra, taking the annual bill to £2,000 for the first time.

The current ceiling on rates for councils responsible for social care is 2.99 per cent, including a one per cent levy for social care.

The change would mean people with properties in Band H - the most expensive rate - could end up paying up to £200 extra, taking their yearly bill above £4,000, the paper said.

Mr Hunt previously warned that he would have to make decisions of “eye-watering” difficulty to restore Britain’s economic credibility after scrapping almost every measure outlined in Ms Truss and former chancellor Kwasi Kwarteng’s September statement.

Mr Sunak on Monday dropped his biggest hint yet that he would protect the pensions triple lock.

Speaking ahead of Mr Hunt’s 17 November mini-Budget, the PM said that pensioners were “at the forefront of my mind” and promised that the chancellor’s tax-and-spend plans had “fairness and compassion” at their hearts.

As they welcomed his comments, one charity warned that the triple lock commitment could mean the difference between “frightened” pensioners using their central heating or not this winter.

But against the backdrop of a widespread cost of living crisis, Mr Sunak faced calls to commit to raising all benefits, including those for working-age people, in line with prices.

Ryan Shorthouse, chief executive of the Conservative think tank Bright Blue, said: “It is intellectually indefensible to protect the value of the state pension in line with inflation but not universal credit. Either both rise by inflation or both rise by earnings.”

Mr Sunak has previously said the autumn statement would protect the most vulnerable but has so far refused to give a cast iron guarantee on raising benefits in line with inflation.

The Independent has approached the Treasury for comment.