Average Sheffield households could be paying up to £2,000 in Council Tax next year

Jeremy Hunt delivered his Autumn Statement today (Thursday, November 17) and announced several measures which are aimed to reduce inflation and help the UK economy recover after the Covid-19 pandemic and the energy crisis.

Tax is one avenue that the chancellor has changed to help the financial pressures - high earners (people who are paid over £150,000) will pay around £1,200 more in tax annually.

The Chancellor also lowered the threshold for paying the highest rate of tax from £150,000 down to £125,140. Other announcements included a 35 per cent windfall tax on energy companies and a £3.3 billion budget increase for the NHS over the next two years.

The Chancellor also promised £2.3 billion to schools and said that the UK will continue to reduce emissions by 68 per cent by the year 2030.

As part of the Autumn Statement local councils will now have more autonomy over council tax.

Before the policy change a local referendum would be required for a council to raise tax above 2.99 per cent but from April 2023 they will have the option to up the tax by five per cent without a vote.

The budget stated: “This will give local authorities greater flexibility to set council tax levels based on need, resources and priorities of their areas, including adult social care.”

The decision was not a popular one with Labour who opposed the tax policy during the reading of the Autumn Statement in the House of Commons.

Rachel Reeves, shadow Chancellor, said: “The government is forcing local councils to put up council tax.

“Now the Chancellor seems to have confirmed today a council tax bombshell worth £100 for a typical band D property, taking their council tax above £2,000 for the first time.”

Council Tax raises will depend on local authorities on an individual basis and the type of band a household is in.

According to the Sheffield City Council website Sheffield has 145,995 properties in band A, 40,579 properties in band B, 32,613 properties in band C, 16,646 properties in band D, 9,676 properties in band E, 4,479 properties in band F, 2,935 properties in band G and 191 properties in band H.

The Sheffield Star asked its readers what they think about the possibility of a five per cent council tax rise next April.

It was an overwhelmingly unpopular decision for readers such as Patrick Loukes, he wrote: “The government won’t be happy until they take every penny off hard working people, they bleed us dry.”

The cost of living crisis was on Kathleen Hassanali’s mind, she said: “How are people going to pay for that?

“With energy, food and petrol all going up we better find a tent to live in.”

Keith Jones wrote: “Sounds like they’re coming for every single penny that we have.”

And Dawn Sunset commented: “It is the working people who are paying, again.”