Millions face council tax rise of more than 5%

Millions of radical successful England are facing assembly taxation rises supra the mean limit, aft the authorities allowed six areas to bypass a 5% headdress connected increases.

Usually section authorities with societal attraction duties tin lone rise assembly taxation each twelvemonth by up to 4.99% without a referendum, portion others tin summation it by up to 2.99%.

But the authorities has present confirmed that Bradford Council volition beryllium allowed an summation of 10%, portion Newham and Windsor and Maidenhead volition some beryllium allowed a 9% rise.

Birmingham, Somerset and Trafford volition beryllium allowed to summation their bills by 7.5%.

Deputy Prime Minister Angela Rayner said the councils were selected arsenic they had "amongst the lowest levels of assembly tax" - adjacent with the crisp increases.

She said: "We recognise the value of constricted increases successful helping to forestall these councils falling further into fiscal distress – but we person been wide this indispensable beryllium balanced with the interests of taxpayers."

The authorities blocked respective councils from raising taxes supra 4.99%, including Hampshire, which had asked to beryllium allowed a 15% increase.

The six councils permitted to rise assembly taxation supra 5% without a referendum unneurotic service astir 2.5 cardinal people.

The authorities says successful full councils successful England volition person £69bn to walk adjacent year, a 6.8% emergence connected this year, assuming they each hike assembly taxation by their maximum permitted amount.

This includes an summation successful cardinal authorities backing of £2bn compared to this year, including £1bn for societal care.

However, £515m of this other backing has been earmarked to offset the effect of the emergence successful National Insurance (NI) contributions from April.

Specific allocations to mayoral combined authorities stay astatine zero, meaning they are expected to make backing done different means.

Labour's manifesto promised longer assembly taxation plans, mounting budgets for astatine slightest 2 years.

The authorities is besides consulting connected introducing a stronger nexus betwixt wide backing and deprivation from 2026, arsenic portion of a wider shake-up of assembly financing.

Local Government Association seat Louise Gittins said assembly finances stay "extremely challenging" and the other wealth adjacent twelvemonth "still falls abbreviated of what is desperately needed".

She said: "This fiscal twelvemonth truthful remains highly challenging for councils of each types who present look having to summation assembly taxation bills to bring successful desperately needed backing adjacent twelvemonth yet could inactive beryllium forced to marque further cuts to services".

She called for a "more sustainable aboriginal backing system" arsenic good arsenic "significant and sustained increases successful wide funding" for councils successful the upcoming spending review.