Households in wealthy areas could be hit with huge council tax rises under Angela Rayner's plans to divert more funding to deprived regions, experts warned last night.
Reforms being brought in by the Deputy Prime Minister will mean many councils in the South – including London and the Home Counties – face swingeing cuts to their core budgets.
Those in the Midlands and North can expect to see large increases.
A report by the Institute for Fiscal Studies suggests the funding changes will see around a quarter of councils in England lose money in real terms – creating big 'winners and losers' as ministers try to address perceived unfairness in levels of funding across the country.
However, the strength of cuts in wealthy areas that have historically kept council tax bills low means they will have less money to spend on vital services such as bin collections and elderly care – even if they increase bills by the maximum amount currently allowed.
