A state pensioner in London is facing a combined annual tax bill of £16,000 following a major shake-up of local authority funding introduced by the Labour government.
Homeowner's Fury Over "Disgusting" Tax Hike
David Crickmore, 67, who owns properties in London and Suffolk, has calculated that his council tax for his London home could nearly double by 2027 under the new rules. The retired homeowner, who comes from a working-class background and attended university, said he is "furious" at the prospect.
"Just for living in my properties, I would be looking at between £13,000 and £14,000 in extra taxes per year," Mr Crickmore stated. "It's just disgusting." He explained that he worked incredibly hard all his life, building up a couple of properties for his retirement, and now fears the financial impact will force him to sell one.
Six Boroughs Granted Power for Larger Hikes
The controversy stems from Labour granting six local authorities in and around London the power to implement larger council tax increases. This move comes after the government reduced its share of funding to these areas. The councils affected are:
- Kensington and Chelsea
- Westminster
- Wandsworth
- Hammersmith and Fulham
- City of London
- Windsor and Maidenhead
These authorities will be allowed to raise rates by more than 5% for two years without needing approval from local voters. They are among those expected to lose out as government cash is shifted towards more deprived areas from next year.
Consequences for Homeowners and Political Reaction
Mr Crickmore bought his semi-detached home in Wandsworth for £950,000 in 2011 and has since invested around £600,000 in renovations and extensions. He now says the rising costs could make his position untenable. "To take £15,000 out of my savings to pay for the properties it will kill my aspirational position because I'll have to sell one," he lamented.
Shadow housing minister David Simmonds criticised the reforms, warning they would have serious consequences. "This Labour Government is on a mission to raise council tax across the board," Mr Simmonds said. "People will just end up paying more and getting less."
The changes highlight the ongoing tension between funding local services in affluent areas and redistributing resources, with some homeowners now facing significant new financial burdens.