Brits given ‘ticking time bomb’ council tax warning | UK | News
Britons have been warned that £156.4bn of local government debt is a “ticking time bomb for taxpayers”. New research has shown that local government debt in the UK has reached £156.4bn, up 4% on the previous year.
Figures obtained by the TaxPayers’ Alliance confirmed that they represent an increase of £6bn compared to 2025. Meanwhile, public sector net debt – the cumulative impact of past borrowings, usually expressed as a percentage of gross domestic product (GDP) – has now reached over £2.9 trillion (93.7% of GDP).
England accounted for 80% (£127bn) of local government debt, the findings showed. This currently equates to an average council tax band D bill of over 53 million. Debt per resident currently stands at £2,232; This is double the figure in 2009-10.
A briefing published by Taxpayers Union It says: “In recent years, rising interest rates and increasing service pressures in parts of the local government sector have drawn renewed attention to the sustainability of council finances, with seven councils effectively declared bankrupt, issuing 11 section 114 notices between 2018 and 2023.
“Taxpayers ultimately stand behind these obligations, so transparency around the scale and distribution of council debt is vital.”
John O’Connell, the group’s chief executive, said: “The mountain of local government debt is a ticking time bomb for taxpayers who will eventually be left holding the bag.
“Decades of speculative investment, reckless borrowing and Westminster legal obligations have left councils brimming with debt, while essential services such as pothole repair have been neglected.
“Local authorities urgently need to get their debts under control before even more of them go completely bankrupt.”
Commenting on the research, Shadow Housing Secretary Sir James Cleverly told GB News: “Labour promised to strengthen local government, but the opposite has happened.
“Top-down restructuring plans are causing chaos. West Surrey, for example, will have to spend 40% of its income on debt. With Andy Burnham promising more devolution, Labor Mayors could raise taxes further to plug the gap.”
“Labour’s head is in the sand. The Conservatives are the only party with a plan to rein in spending, reduce debt and create a stronger economy and a stronger country.”
