Council tax would need to rise 20pc to avoid service cuts

COUNCIL tax bills would have to rise by a fifth to avoid cuts to public services, the Local Government Association (LGA) has warned.

Whitehall plans to allow councils to increase bills by 5 per cent, to fund social care, without consulting homeowners, taking the average bill to more than £2,000 per year for the first time.

However, rising costs and increased demand for services are creating funding gaps too large to be plugged by council tax increases, the LGA said.

It said a 20 per cent rise would be needed to meet councils’ costs, which would increase Band D council tax bills to around £2,350 a year.

Last night, 70 per cent of respondents to an Ipsos poll opposed a council tax rise. Most opposed limiting public sector pay, reducing public services spending and removing the triple lock on retirement pensions. There was support for higher windfall taxes on oil and energy companies, increasing the rate of tax on earnings over £150,000 and freezing overseas aid at 0.5 per cent.