Millions face council tax rise of more than 5%

Millions face council tax rise of more than 5%


Deputy Prime Minister Angela Rayner said the councils were selected as they had “amongst the lowest levels of council tax” – even with the sharp increases.

She said: “We recognise the importance of limited increases in helping to prevent these councils falling further into financial distress – but we have been clear this must be balanced with the interests of taxpayers.”

The government blocked several councils from raising taxes above 4.99%, including Hampshire, which had asked to be allowed a 15% increase.

The six councils permitted to raise council tax above 5% without a referendum together serve around 2.5 million people.

The government says in total councils in England will have £69bn to spend next year, a 6.8% rise on this year, assuming they all hike council tax by their maximum permitted amount.

This includes an increase in central government funding of £2bn compared to this year, including £1bn for social care.

However, £515m of this extra funding has been earmarked to offset the effect of the rise in National Insurance (NI) contributions from April.

Specific allocations to mayoral combined authorities remain at zero, meaning they are expected to generate funding through other means.

Labour’s manifesto , externalpromised longer council tax plans, setting budgets for at least two years.

The government is also consulting on introducing a stronger link between overall funding and deprivation from 2026, as part of a wider shake-up of council financing.



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