Half of Councils Increased Reserves While Hiking Taxes – Guido Fawkes

Half of Councils Increased Reserves While Hiking Taxes

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The National Audit Office sounded the alarm last week that nearly half of England’s councils are on the brink of bankruptcy, staring down a £4.6 billion black hole. Ministers are now under pressure to hike council tax by as much as 25% to keep them afloat. But while councils cry poverty, they’ve been quietly hoarding cash, slashing services, and jacking up bills…

Last year, council tax across England, Scotland, and Wales increased on average by 3.92%. Though new research from the TaxPayers’ Alliance reveals that almost half of councils that published their 2023-24 accounts (150 out of 318) actually increased their usable reserves. Overall total usable reserves across councils totalled a whopping £47 billion in 2024. The worst offenders include Epping Forest, which raked in £86 million from a land sale yet still hit locals with a 4.99% rise, and Milton Keynes, where usable reserves grew by £78.8 million (29%) despite hiking council tax by 4.99%. Shimeon Lee, policy analyst at the TaxPayers’ Alliance, said:

“Local taxpayers will rightly be concerned that some councils are filling their coffers at the expense of residents. For years, town halls have hiked council tax while pleading hardship. These figures expose the truth—many are hoarding cash while locals struggle. Ministers must act to stop excessive reserves and ensure councils are transparent with taxpayers. Enough is enough.”

With council tax rises of up to 5% allowed without a referendum, town halls seem to be milking the system…