Council Tax Rises and Service Cuts

Recent reports from Cambridge to Camden have exposed a growing crisis in local government that working people across England can no longer afford to ignore. While councils face budget black holes, core services are under pressure, and workers are seeing their taxes rise year after year, local political leaders are hiking their own pay and spending public money on projects that seem far removed from frontline needs.

Cambridge City Council’s Controversial Pay Rise

At the centre of the latest storm is Cambridge City Council, where Labour leader Cllr Cameron Holloway has awarded himself a 33% pay rise, raising his annual allowance from £23,459 to £31,276. This comes as the council faces a £3.6 million budget shortfall and has drawn national criticism for using taxpayer-funded grants on projects—like cookery classes for asylum seekers to “experience joy”—while denying any cuts to essential services.

One in Four Councils Set to Lose Out

According to analysis by the Institute for Fiscal Studies (IFS), sweeping reforms to local authority funding will leave about 186 councils worse off, with one in four losing money in real terms. These changes, due between 2026 and 2029, are driven by the Government’s attempt to “rebalance” funding based on population, deprivation, and local tax-raising capacity.

Instead of injecting more money into a broken system, the reforms simply rearrange the deckchairs. Some councils—especially in inner London and the South East—will see major cuts to their central funding. Others, mainly in the Midlands and North, will gain. But the overall funding pot is not increasing. And the main recommendation for affected areas is simple: raise council tax even higher. In other words: working families pay more, and get less.

The Impact on Workers

The Workers of England Union is clear: this is not about north versus south, or urban versus rural. It’s about fairness, transparency, and accountability in public spending and how working people across England are treated by the councils they fund.

Workers already pay high council tax bills for declining services like waste collection, housing support, adult social care, and road maintenance. Now they’re being told to pay more to cover budget shortfalls caused by years of mismanagement. Meanwhile, local leaders increase their own allowances and spend tens of thousands on projects that don’t address basic needs. Many residents are already struggling with the rising cost of living.

Why the WEU Is Speaking Out

The Workers of England Union—proudly non-partisan—stands firmly for defending our members and ensuring their taxes are used fairly and responsibly. We believe in:

• Fair taxation: People should not be punished for living in certain areas through excessive council tax hikes.
• Efficient public services: All taxpayers across England should see clear, tangible benefits from the money they pay.
• Transparent governance: Pay rises and public spending must be justified, especially in times of financial hardship.
• Equal treatment: Workers in England must not be left behind in a postcode lottery of funding.

We also believe that local accountability has been eroded. Too many councils now operate as if they are unanswerable, prioritising internal agendas and self-reward over the needs of those who fund them.

Our Call to Action

“Working people across England are being squeezed harder than ever, paying more in council tax and getting less in return. The Workers of England Union stands firmly for fairness, transparency, and accountability. Our members deserve to know how their money is being spent. Ask your colleagues, family and friends to join the WEU so we can increase the power of our voice when raising these concerns.”

Stephen Morris, General Secretary, Workers of England Union