The council tax pain facing families was laid bare today with nearly all local local authorities planning the maximum hikes allowed.
New figures show 129 out of 136 county and unitary local authorities in England who have made announcements are increasing levies by 4.99 per cent in April.
That is the maximum permitted by the Government without having a local referendum and means the average Band D household will face an rise of £103 over the next year.
In contrast, just three in four councils intended to levy the maximum this time last year, according to data compiled by the County Councils Network (CCN).
New figures show 129 out of 136 county and unitary local authorities in England who have made announcements are increasing levies by 4.99 per cent in April
Council leaders warned that taxpayers will have to bear more financial pain during the cost of living crisis.
Sam Corcoran, leader of Cheshire East Council and vice-chairman of the CCN, said: ‘County authorities face a £1.1billion budget shortfall over the next two years.
‘With council tax now accounting for two-thirds of the average county authority’s funding, we have little choice but to take the difficult but necessary decision to raise council tax by 4.99 per cent to continue to protect services and ward off the threat of financial insolvency in the future.’
Seventeen top-tier authorities are yet to declare their council tax intentions.
Four councils which have previously issued section 114 notices declaring effective bankruptcy – Birmingham, Woking, Slough and Thurrock – have been given special dispensation by the Government to raise council tax by 10 per cent.
Some councils have agreed on the maximum increase but plan to introduce measures to mitigate the impact on residents, such as making support-funding available to low-income households.
Councils are said to be making savings by boosting preventative measures in children’s and adult social care, but this approach will take time to have an impact on finances.
The CCN has called on the next government to implement a ‘comprehensive’ reform programme to drive down costs, including an overhaul of the legislative framework for school transport and action to reduce fees charged by private providers in the children’s social care market.
A Department for Levelling Up, Housing and Communities spokesperson said: ‘We recognise councils are facing challenges and that is why we recently announced an additional £600 million support package for councils across England, increasing their overall funding for the upcoming financial year to £64.7billion – a 7.5 per cent increase in cash terms.
‘Councils are responsible for their own finances and set council tax levels, but we have been clear they should be mindful of cost-of-living pressures. We continue to protect taxpayers from excessive council tax increases through referendum principles.’
But town halls were told to continue to make efficiency savings to avoid passing the buck to taxpayers.
Elliot Keck, of the Taxpayers’ Alliance said: ‘Financial mismanagement by local councils has been mercilessly exposed in recent months, and town hall bosses are scrambling to plug the gap.’
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