County and Unitary councils can raise taxes by up to 5% annually without a referendum, but town and parish councils face no such limit, leading to steep hikes recent examples of 35.7% and 26%. With more services shifting to town and parish councils, a cap at this level is increasingly necessary.
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Extend the 5% council tax cap to town/parish councils. Introduce referendum thresholds for precept increases, as required for county and unitary councils. Mandate greater transparency and public consultation for budgetary decisions affecting council tax, ensuring local residents can voice their concerns. I believe capping at 5% will ensure that precept increases are proportionate to costs and will prevent unnecessary financial strain on households, especially during the cost-of-living crisis.