Hundreds of thousands face council tax rise of greater than 5%

Hundreds of thousands of households in England are dealing with council tax rises above the conventional restrict, after the federal government allowed six areas to bypass a 5% cap on will increase.

Often native authorities with social care duties can solely increase council tax yearly by as much as 4.99% and not using a referendum, whereas others can improve it by as much as 2.99%.

However Deputy Prime Minister Angela Rayner has confirmed that Bradford Council will likely be allowed a rise of 10%, whereas Newham and Windsor and Maidenhead will all be allowed a 9% rise – Birmingham, Somerset and Trafford can improve their payments by 7.5%.

Rayner mentioned the will increase had been essential to “stop these councils falling additional into monetary misery”.

She mentioned: “We recognise the significance of restricted will increase in serving to to forestall these councils falling additional into monetary misery – however we’ve been clear this have to be balanced with the pursuits of taxpayers.”

The federal government blocked a number of councils from elevating taxes above 4.99%, together with Hampshire, which had requested to be allowed a 15% improve.

An announcement on native authorities funding additionally confirmed that councils can have entry to greater than £69bn this 12 months – a 6.8% improve in money phrases in comparison with 2024-25.

The settlement means no council will see a discount in core spending energy.

Greater than £2bn of this may come from direct grant funding above income acquired from council tax.

The announcement additionally confirmed councils will get more money to handle the price of will increase to employer Nationwide Insurance coverage contributions.

The highest-up brings further funding for subsequent 12 months to round £2bn, on high of £1.3bn introduced at October’s Price range.

Particular allocations to mayoral mixed authorities stay at zero, that means they’re anticipated to generate funding by means of different means.

Native Authorities Affiliation chair Louise Gittins mentioned council funds stay “extraordinarily difficult” and the additional cash subsequent 12 months “nonetheless falls brief of what’s desperately wanted”.

She mentioned: “This monetary 12 months due to this fact stays extraordinarily difficult for councils of every kind who now face having to extend council tax payments to usher in desperately wanted funding subsequent 12 months but may nonetheless be compelled to make additional cuts to providers”.

She referred to as for a “extra sustainable future funding system” in addition to “vital and sustained will increase in general funding” for councils within the upcoming spending evaluate.