Households face council tax hikes as cash-strapped native authorities enhance levy | Politics | News | EUROtoday

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Households face steep council tax hikes as almost each native authority plans to boost the levy by the utmost of 4.99% this April, an evaluation has discovered.

At least 129 of 136 county and unitary native authorities in England who’ve up to now printed their funds proposals need to attain the brink,the County Councils Network (CCN) stated.

Councils have the liberty to boost tax by 3% – plus one other 2% for social care – with out holding a referendum.

Such rises will add round £100 to typical Band D council tax payments, taking them to a mean of greater than £2,100.

Councillor Sam Corcoran, vice-chair of the County Councils Network, stated: “This year councils have faced extreme financial pressures, with local authorities having to make some of their toughest decisions ever due to rising costs and spikes in demand for care services.

“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% to continue to protect services and ward off the threat of financial insolvency in the future.

“No council leader takes the decision to raise council tax lightly as we know this will add to the cost-of-living for residents, but councils have had little choice but to put up council tax due to the increased demands, particularly in children’s services.

“The next government must set out a long-term funding plan for councils while also undertaking a comprehensive reform programme to help drive down costs, especially for children’s services and home to school transport.”

A complete of 17 authorities are but to declare their proposals, whereas 4 bankrupt authorities – Birmingham, Woking, Slough and Thurrock – have particular dispensation to boost council tax by 10%.

Out of this quartet, solely Thurrock has printed proposals.

Mr Corcoran stated: “Last month, the government provided a very welcome £600 million of additional funding for councils. This will make a tangible difference to protecting valued frontline services and in easing the pressures we face.

“Despite this, county authorities still face a £1.1billion budget shortfall over the next two years.

A poll from December found that nearly one in five council bosses believe it is “fairly or very likely” that they’ll go bust within the subsequent 15 months as funding fails to maintain tempo with inflationary prices and exploding demand for little one safety, grownup social care and homelessness companies.

At least eight councils have declared efficient insolvency within the final six years.

There had been extra part 114 chapter notices in 2023 than within the 30 years earlier than 2018.

Shaun Davies, chair of the Local Government Association, stated: “No council is proof against the danger of working into monetary problem. As our worrying survey exhibits, many now face the prospect of being unable to fulfill their authorized responsibility to set a balanced funds and having Section 114 stories issued.”