Council tax will outstrip inflation for most people

At least 30 local authorities have opted to increase the levy by 5 per cent in April, Telegraph analysis shows

THE vast majority of English households face inflation-busting council tax rises of 5 per cent in April, a Telegraph analysis has revealed.

At least 30 authorities have said they will put up bills by the maximum they are allowed without holding a local referendum – and hardly any have suggested lower increases.

Such rises will add around £100 to typical Band D council tax bills, taking them to an average of more than £2,100 per annum. For those in the most expensive Band H houses, it will mean a rise to as much as £4,200 a year.

In addition, a small number of councils which have effectively gone bankrupt have said their bills could be increased by as much as 10 per cent.

Elliot Keck, the head of campaigns at the Taxpayers’ Alliance, said: “It’s an unhappy new year for local taxpayers who face yet another round of damaging council tax hikes.

“Scores of local authorities have already announced maximum increases, demonstrating that they’re far more interested in imposing a burden on household budgets than sorting out their own, and it seems almost certain most others will follow their lead.

“Councils that have yet to declare tax rates for the upcoming year should seriously reflect on whether it’s fair to ask households to cough up yet again.”

Inflation stands at 4 per cent and is expected to fall throughout the year.

Town halls decide on bill increases in January and February. The Telegraph looked at top-tier authorities – those which contribute the most to bills – to see which have reported the council tax rises they would like to see.

Almost all those that have made a decision have opted for rises of 5 per cent, indicating that most local authorities will do so. These include Buckinghamshire, Lincolnshire, Hertfordshire, Worcestershire, Suffolk, Essex, Kent and Dorset. Five per cent increases are also expected in Sandwell, Cheshire East, Luton, Blackburn with Darwen, Telford and the Wrekin, Islington, Halton, Harrow and Wakefield.

Only a small number have said their bills will increase by less. Nottinghamshire, for example, is planning a 3 per cent rise. Some councils will put up bills by more because they have received government permission to do so after declaring themselves effectively bankrupt. These include Birmingham, Slough and Thurrock, which will put up bills by up to 10 per cent in April.

Somerset has also asked for government permission to raise bills by 10 per cent even though it has not yet declared itself bankrupt. A 10 per cent increase is also expected in Woking.

In Wales, there is no maximum limit for increases. Powys and Monmouthshire both plan to put up bills by 7.5 per cent, and Newport by 8.5 per cent.

Shaun Davies, the chairman of the local government association, said: “It is wrong that our residents now face further cuts to services as well as the prospect of council tax rises next year, with councils having the difficult choice about raising bills to bring in desperately needed funding.

“The Government urgently needs to address the growing financial crisis facing councils.”

‘Councils are far more interested in burdening household budgets than sorting out their own’