Parish and town councils have triggered an £858million surge in council tax bills this year, using a legal exemption that allows them to bypass the five per cent cap placed on other local authorities.
While principal councils must hold a referendum to approve higher increases, parish councils face no such restriction, a situation critics have branded a stealth tax 'loophole'.
In some areas, bills have jumped by as much as 3,000 per cent, with residents warning they now face permanent extra costs with little transparency or recourse.
Town halls are only allowed to raise council tax by 4.99 per cent each year, or they must seek permission from central Government. But a loophole means there is no limit on how much parish councils can increase their precept, allowing them to implement dramatic rises without the same oversight applied to larger authorities.
In the Bedfordshire village of Aspley Guise, the parish council passed on a 2,792 per cent tax rise, which came into effect in April. For a Band D property in the area, the precept has jumped from £3.73 in 2024 to £105.52 this year.
Council officials said the rise reflected a return to normal levels after the precept fell dramatically from £90.74 in 2023. At the time, the authority had built up big cash reserves.
In some areas, bills have jumped by as much as 3,000 per cent,
GETTYJohn O’Connell, chief executive of the TaxPayers’ Alliance, said: "Taxpayers are being stung by soaring council tax bills, with some parish councils hiking charges far beyond what most would consider reasonable.
"These hikes are slipping through the net with little scrutiny, pushing up costs for residents already feeling the squeeze. Ministers must ensure all layers of local government are held to account and that these loopholes are closed."
In Welford-on-Avon, Warwickshire, the council passed on a five-fold increase, raising rates from £43.02 to £212.80. Residents in Elmton and Creswell, Derbyshire, pay the highest precepts in Britain.
The average Band D household there pays £557.10 a year, up by 67 per cent from £332.95 in 2024. This follows an independent report finding the council had been driven to effective bankruptcy after allowing debts to spiral to £3million.
There are more than 8,000 parish and town councils in England with almost 100,000 councillors
PAIn Wennington, Lancashire, the precept rose from £237.93 to £441.20 for Band D households. Similarly, in Bridgwater, Somerset, the charge increased from £295.33 to £411.06.
Parish councils are the first tier of local government and typically run community services such as leisure centres, bus shelters and allotments. There are more than 8,000 parish and town councils in England with almost 100,000 councillors.
Seven out of 10 parish and town councils increased their precept this year. They raised taxes by 7.4 per cent, following an 8.5 per cent increase last year.
Kevin Morton, a retiree from Yeovil, saw his parish council tax increase by 25 per cent this year to £501.70. This follows a 90 per cent increase last year, meaning his parish council tax has jumped from just over £200 to £500 in two years.
Seven out of 10 parish and town councils increased their precept this year
GETTYIn the same period, Yeovil town council's budget ballooned from £1.3million to £3.3million as it absorbed facilities previously managed by Somerset council.
Morton said: "This is unbelievable. When I saw this year's bill, I fell off my chair. I thought last year was a one-off, but now I fear this could happen every year.
"These rises are now baked in so my extra £300, that's a fixed sum. I'm going to be paying an extra £300 a year forever."
He was particularly angry that Yeovil residents were funding county-wide facilities like the theatre.
