The UK is now anticipating a tsunami of new increases, known as the ‘March of Doom’, including public services like transport that will affect millions of residences. Energy regulator Ofgem has just confirmed a sharp rise in the energy price cap. This necessity comes amid surging, unprecedented wholesale costs, as well as high inflation. Water bills across Scotland are now set to rise by an average of 9.7%. Simultaneously, local governments in England can raise council tax by 4.99% without a referendum. These positive advances are made more favorable by increases or harmonization in road tax, mobile tariffs and stamp duty regulations.
This is why Ofgem raises its energy price cap, which it reviews every quarter, to prevent energy suppliers from making excessive charges for gas and electricity. Though the cap limits increases under that bill’s total cost. This will mean that households that waste large amounts of energy will face more expensive costs. This increase is largely due to increased wholesale energy prices and economy-wide inflationary pressures affecting the entire sector.
Scotland, whose water bills will soon increase by nearly 10%. Scottish Water has blamed rising costs as they face with the effects of climate change including both drought and heavy rains. Water companies in England and Wales announced plans to increase bills at least five times this year. They are pouring money into 19th century infrastructure like sewage systems and creating new reservoirs.
The council tax environment is changing, too. In England, areas where social care is the responsibility of local authorities can raise council tax by 4.99%. They’re able to do that without having to pass a public referendum. Likewise, all councils in Northern Ireland have announced district rate rises for the next financial year. In Wales, some communities may experience a 15% increase in council tax rates. In Scotland, the Scottish government has begun to act to counter these impacts. They have committed a further £1 billion for local councils for 2025-26, intended to lessen the extent of any rise in council tax.
Motorists too will suffer, with an across-the-board hike in road tax. The default tax rate for new car registrations from April 2017 onwards will increase to £195 per annum. The specific amount will depend on what year the vehicle was registered in and what fuel it uses.
Particularly mobile phone users EE will face increased costs. Customers on a Sim-only contract will see an increase of £1.50 per month, which totals to £18 a year. House purchasers in England and Northern Ireland will begin to pay stamp duty on houses worth more than £125,000. This move reduces the old threshold of £250,000.
These changes are telling of wider economic trends, fueled by inflation and soaring operational costs for industries everywhere. Each change makes a real difference for families’ bottom line. This highlights the importance of proactive financial planning amid increasing expenses.
