Households face sharp council tax rises as authorities try to shore up failing finances

NEARLY every household in England will face inflation-busting council tax rises of £100 or more along with higher charges for parking and waste disposal.

Nearly all authorities (95 per cent) plan to increase council tax while 93 per cent will hike charges to make ends meet, the 2018 State of Local Government Finance research, conducted by the LGIU think tank and The Municipal Journal, found. The rises will add around £100 to the average bill for a Band D property – equivalent to six per cent – but as much as £200 for owners of more expensive properties. The planned increases come against a backdrop in which 80 per cent of councils fear for their financial stability. Council tax can be increased by up to three per cent this year, in line with inflation, before a referendum is triggered, while authorities can also levy an additional “precept” to raise money for spending on social care. The greatest immediate pressure on budgets came in children’s services (nearly 32 per cent of councils), followed by adult social care (almost 28 per cent), and housing and homelessness (19 per cent). Adult social care was the greatest long-term pressure (nearly 38 per cent), the survey said.

Jonathan Carr-west of LGIU said: “Councils are on the edge. They are for the most part holding services together, but they can only do this by raising council tax, increasing charging and draining their reserves.”

Surrey, Britain’s richest county, faces a £100million crisis as it struggles to close the budget deficit.