THUMPING RISE IN COUNCIL TAX

Average bill set to go up £100 ... and millions will pay more for parking, waste disposal and burials

MILLIONS of families face punishing council tax rises of £100 or more in April.

Households will also have to pay more for services such as burials and parking permits, councils have warned.

A survey of town halls has found 95 per cent plan to increase council tax by up to 6 per cent.

In addition, 93 per cent plan to put up fees. Garden waste collection, planning, home helps and meals on wheels are all expected to cost more. Despite the extra revenue, some local authorities are considering further cuts – with leisure centres and parks under threat.

But the study by the Local Government Information Unit, released today, suggests the elderly will suffer the most. Two in five English councils plan to cut adult social care.

A separate report from the National Audit Office warns the care sector is close to collapse. It says town halls are not paying care homes enough – putting them at risk of going under.

Last night it emerged that Surrey, Britain’s richest county, is in dire financial straits with a £105million deficit. Another Tory-run council, Northamptonshire, admitted last week that it was close to bankruptcy.

Communities Secretary Sajid Javid announced before Christmas that council tax could be pushed up by 6 per cent without the need for a local referendum. This includes

3 per cent to pay for social care and 3 per cent for other priorities. Police and crime commissioners can impose an extra levy of £12 a household.

It means a potential rise of around £107 for a Band D property, taking bills from £1,591 to as much as £1,698 next year. Those living in Band E homes face a jump of up to £129 and owners of Band H houses as much as £203.

The Labour leader of Warrington Council, Terry O’Neill, said last night that he was braced for a backlash. ‘We’ve come to a cliff edge,’ he told ITV News. ‘There’s nowhere to go because, we’ve lost somewhere like £120million since 2010.’

Asked whether residents would understand why taxes were going up, he said: ‘Probably not, no. They will obviously have concerns, they will blame the council, they will blame us, and I think that’s what the Government wants – but we’ve nowhere to go.’

The LGIU said it was very likely that three quarters of councils would put up bills by the maximum permissible 6 per cent. The think-tank’s survey – conducted with the Municipal Journal – was based on the responses of 113 councils, one in three of those in England.

It found 95 per cent of town halls were considering council tax rises, 4 per cent looking at a freeze and 1 per cent a reduction. Seventy-six per cent said their increase would be at least 2

‘Perilously close to the edge’

per cent. The LGIU said this would in practice mean 6 per cent – along with new and increased fees for services.

‘ Councils are having to increase charging on everything they can, everything from planning applications, to cremaper tions, to cutting grass,’ said Jonathan Carr-West, who is chief executive of the LGIU.

‘And they’re having to make cuts to non- essential services; libraries, parks, even then 70 cent of councils are only managing because they’re raiding their reserves. That’s not sustainable.’

Last year 94 per cent of authorities put up council tax.

The LGIU report found that 53 per cent of councils were set to reduce spending on parks and leisure. Forty per cent said there were likely to be cuts to adult social care, while 34 per cent singled out youth centres.

John O’Connell of the TaxPayers’ Alliance said: ‘Council tax is a major burden on taxpayers and a huge contributor to the cost of living. Local authorities should think twice before another round of painful tax hikes and instead step up a war on wasteful spending.’

Lord Porter of the Local Government Association said: ‘Extra council tax raising powers will helpfully give some councils the option to raise some extra income but will not bring in enough to completely ease the financial pressure.

‘This means many councils face having to ask residents to pay more council tax while offering fewer services.’

Heather Jameson, editor of the Municipal Journal, said: ‘The Government needs to rapidly rethink its funding of local authorities before services – including those for the elderly and vulnerable children – start to crumble completely.’

A Ministry of Housing, Communities and Local Government spokesman said last night: ‘Our finance settlement strikes a balance between relieving growing pressure on local government whilst ensuring that hard-pressed taxpayers do not face excessive bills.

‘Overall councils will see a real term increase in resources over the next two years, more freedom and fairness and with a greater certainty to plan and secure value for money.

‘We are also delivering on our commitment to give councils more control over business rates – with millions of pounds staying in communities.’