14 February 2023 , 00:01
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Households are facing major council tax hikes in April as three quarters of cash-strapped local authorities plan to increase bills by up to 5%.
Analysis the County Councils Network (CCN) found that 84 out of the 114 local authorities in England who have already published their 2023/34 budget proposals plan to raise council tax by the maximum level.
Town hall leaders have begged for more cash in the upcoming Budget as they grapple with "the most difficult circumstances in decades", with inflation close to a 40-year high and spiralling demand for social care.
Without council tax rises, they will be forced to slash frontline services, the CCN said.
It comes after Chancellor Jeremy Hunt relaxed the cap on raising bills above 3% in last year's Autumn Statement, allowing town, county and city halls to raise them by up to 5% without holding a referendum.
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Average Band D council tax bills are already £1,966 - soaring by more than £500-a-year since 2010.
From April, bills for the typical Band D household will rise by £99 to £2,065 with a 4.99% increase, although this will vary across the country.
Councils can raise their bills by up to 5% without holding a referendum (Getty Images)People living in rural areas are worst affected, with the typical council tax bill for Band D residents in the countryside will rise from around £2,000-a-year to £2,149 under the maximum rise.
This is 20% higher than average bills faced by residents in London, with Band D households facing an average of £1,780 per year from April.
Rural areas have historically received lower funding from the Government - meaning councils make up the shortfall through higher taxation.
Cllr Sam Corcoran, Labour Vice-Chairman of the County Councils Network and Leader of Cheshire East Council, said: “With inflation reaching levels not seen for nearly 40 years and with demand-led pressures for care services showing no sign of abating, local authority leaders are setting their budgets in the most difficult circumstances in decades.
“We all recognise the cost-of-living crisis is impacting on every household in the country and disproportionally on those with low incomes, but we have little choice but to propose council tax rises again next year, with many councils reluctantly opting for maximum rises.
“With councils facing multi-million funding deficits next year, the alternative to council tax rises would be drastic cuts to frontline services at a time when people at the sharp end of the cost-of-living crisis need us to be there for them.
"With the financial situation for local authorities looking extremely tough for the next few years, we will be calling on the Chancellor for further help in the March Budget.”
A Department for Levelling Up spokesperson said: “We recognise the pressures councils are facing and have made almost £60 billion available over the next financial year - a 9% increase on 2022-23 – with the most deprived areas of England receiving 17% more per household this year than the least deprived.
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“Our approach to council tax balances the need to deliver vital services while protecting residents from excessive increases and we expect local authorities to take into consideration the challenges many households are facing.”