Graham challenges Government over £200 council tax bombshell as cost of living tops local concerns
Graham has challenged the Government in Parliament over what he described as a £200 council tax bombshell facing families across Beverley and Holderness, as the cost of living remains the top priority raised with him by local people.
Recent conversations on doorsteps, in businesses and at community events show that rising household costs are the issue people mention first. With inflation rising again and everyday bills climbing, Graham warned that this settlement risks making a difficult situation worse.
During the debate on the local government finance settlement, he said the Government’s headline claim of increased funding masks a different reality.
Pay More. Get Less.
The Government says the East Riding is receiving more money. But that figure relies heavily on council tax rising by 5% a year, paid by local residents.
Without those tax increases, central government support is falling. Over three years, the East Riding will be worse off by around £60 million. By the end of the period, the recurring annual gap will be roughly £30 million.
Graham has also formally asked the Government to confirm whether the settlement effectively requires councils to impose the maximum 4.99% council tax rise each year in order to stand still.
He has requested written clarification on whether the Government’s funding calculations assume those increases, and what the settlement would look like for the East Riding if council tax were not raised at that level.
For families, that means:
- Around £200 more each year for smaller homes
- Close to £300 more for typical Band D properties
Graham told the House that asking families to pay more at a time of rising prices is the wrong choice.
Graham said: “The cost of living is the number one issue people raise with me across Beverley and Holderness.
“They are working hard and still feeling the squeeze. Food costs more. Energy costs more. Travel costs more. Now they are being asked to find another £200 a year in council tax.
“The Government calls this increased funding. But if you strip out the tax rise, support from the centre is falling.
“That means families pay more and risk getting less. That is not fair.”
Jobs and services at risk
Graham warned that the scale of the funding gap could affect jobs and local services.
Every £10 million of lost funding is roughly equivalent to 250 council jobs. The recurring gap is close to the annual budget for community services such as libraries, museums and leisure centres in the East Riding.
SEND support falling behind
He also raised concerns about support for children with special educational needs.
The East Riding is the lowest funded authority in the country for high-needs pupils. While the national average increase next year is around 6%, the East Riding will receive just 2%.
Graham said: “When you are the lowest funded authority in the country and you receive the lowest increase, something has gone wrong.
“Families with children who need extra support deserve fairness. They should not be left behind.”
Rural areas exposed
Independent analysis shows rural councils like the East Riding receive far less grant support for rising costs than urban areas, meaning local taxpayers shoulder more of the burden themselves.
Listening and acting
Graham has launched a cost of living survey so residents can share how rising prices and higher bills are affecting their households. The results will be fed directly into his work in Parliament and with Ministers.
Residents can take part at: grahamstuart.com/CostOfLiving
Graham said: “I will keep making the case in Parliament that families here cannot afford to be squeezed further.
“The cost of living is not an abstract debate. It is about whether people can heat their homes, put food on the table and support their children.
“I will keep working hard to ensure the voice of Beverley and Holderness is heard in Government and to deliver on my record of real results.”
