Labour is considering doubling council tax in order to fund the building of more affordable housing, according to new research. The study found that 84% of councils do not have enough funds to hire additional planning officers, a necessary step to meet the government’s goal of constructing 1.5 million homes in the next five years.
The District Council Network (DCN) is calling for a 10% increase in council tax across England to ensure that the housing target is met. Without this financial support, councils may struggle to keep up with the demands of the government’s house-building plans.
Richard Wright, the DCN’s planning and growth spokesman, emphasized the importance of properly resourced planners in achieving successful and sustainable housing developments. He highlighted the impact of budget cuts on planning departments, which have hindered councils’ ability to recruit and retain skilled professionals.
Wright warned that without adequate planning expertise, there is a risk of building housing in locations that are not desirable or sustainable in the long run. By investing in trained planners, the government can ensure the creation of new communities that meet the needs of residents and contribute to overall growth and development.
As the Chancellor prepares for the upcoming Autumn Budget, there is speculation that a council tax hike could be included in the financial plans. This move could help address the funding gap faced by councils and support the ambitious house-building targets set by the government.
In addition to the potential increase in council tax, other economic and political factors are also being considered in the budget discussions. Investors are concerned about market stability, while business owners are worried about the impact of tax laws on their operations. The Chancellor has indicated that the wealthy may face a heavier tax burden in the upcoming budget, raising further questions about the government’s fiscal policies.
Overall, the push to double council tax to support affordable housing initiatives reflects the broader challenges and priorities facing the UK economy. By investing in infrastructure and housing, the government aims to stimulate growth and address housing shortages, but the implementation of these plans will require careful planning and adequate financial support at the local level.
