Martin Ford 14 February 2023

Majority of councils opt for 5% council tax rises

Majority of councils opt for 5% council tax rises image
Image: Vitalii Vodolazskyi/Shutterstock.com.

Three quarters of councils will increase their council tax by the maximum allowed without a referendum in April.

Research by the County Councils Network (CCN) found that 84 authorities out of 114 with published budgets have opted for 4.99% increases including social care precepts.

Only one council has so far chosen not to raise tax, while Slough and Thurrock have Government dispensation to raise theirs by 10% and Croydon by 15%.

A total of 38 councils have yet to put forward their tax proposals for 2023-24.

CCN pointed out that Band D council tax bills in county areas will rise to £2,149 on average, 20% higher than in London boroughs due to inflation and demand coupled with lower Government funding.

Hampshire County Council faces a £57.7m funding deficit, Durham £10.2m and Cheshire East £25.4m.

Labour vice-chairman of CCN, Sam Corcoran, said it was ‘the most difficult circumstances in decades’ for budget setting and the alternative to tax rises would be service cuts.

He added: ‘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 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.’

This article was originally published by The MJ (£).

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