6% Council tax increase to hit millions
Cash-strapped town halls plan inflation-busting hike
COUNCIL tax will rise at up to double the rate of inflation this year, hitting the average household for an extra £95.
Most local authorities will hike the levy in April as they struggle for financial stability, a report reveals.
It comes after Local Government Secretary Sajid Javid gave them the green light to increase bills by as much as 2.99% instead of 1.99%.
Those that provide social care can also slap on up to 3% – bringing the total rise to 5.99%, nearly double the current inflation rate of 3%.
It would take the annual cost for a typical property – the average Band D home – up £95 to £1,686.
Some 95% of councils across England plan to increase council tax, according to research by the Local Government Information Unit thinktank and The Municipal Journal.
It comes as 80% of councils fear for their financial stability. Some say planned rises will not be enough to plug black holes created by 40% cuts in Whitehall funding since 2010.
Jonathan Carr-West, chief of LGiU, said: “Councils are on the edge. They are for the most part holding services together… but can only do this by raising council tax, increasing charging and draining their reserves.”
Local Government Association chairman Lord Porter said services will suffer. He warned: “[Rises] will not bring in enough to completely ease the financial pressure they face. It means many councils face having to ask residents to pay more council tax while offering fewer services.”
Labour says it will boost local authorities by following the example of Preston City Council.
The town hall returned almost £200million to the local economy and supported more than 1,600 jobs with measures including buying local goods and services where possible.