Three in four councils to raise council tax by 5 per cent

According to research by the County Councils Network (CCN) three quarters of councils are set to raise their council tax by the maximum amount in April.

The research found that 84 out of the 114 who have already published their 2023/34 budget proposals intend to raise council tax by the maximum 4.99 per cent. This applies to upper-tier councils with social care responsibilities.

The 4.99 per cent increase is made up of 2.99 per cent for general council tax and 1.99 per cent for the adult social care precept.

Councils are facing funding gaps with inflation at 10.5 per cent and the cost-of-living crisis.

The research shows that all councils except one plan to raise council tax next year. Croydon, Thurrock and Slough have special dispensation to propose rises over 4.99 per cent.

A 4.99 per cent increase for the average Band D household will mean a £99 a year or £1.91 a week increase.

Cllr Sam Corcoran, Labour vice-chairman of the County Councils Network and leader of Cheshire East Council, said:
 
“With inflation reaching levels not seen for nearly 40 years and with demand-led pressures for care services showing no sign of abating, local authority leaders are setting their budgets in the most difficult circumstances in decades.
 
“We all recognise the cost-of-living crisis is impacting on every household in the country and disproportionally on those with low incomes, but we have little choice but to propose council tax rises again next year, with many councils reluctantly opting for maximum rises.
 
“With councils facing multi-million funding deficits next year, the alternative to council tax rises would be drastic cuts to frontline services at a time when people at the sharp end of the cost-of-living crisis need us to be there for them. With the financial situation for local authorities looking extremely tough for the next few years, we will be calling on the Chancellor for further help in the March Budget.”

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