Thurrock, Croydon and Slough will be allowed to increase council tax beyond the referendum limits imposed on others, the Government has confirmed.

Thurrock BC and Slough Council will be able to raise council tax by an additional 5% compared to other councils while Croydon LBC will be able to raise an additional 10%.

The Department for Levelling Up, Housing and Communities (DLUHC) said it had agreed to requests from the authorities due to their financial difficulties, attributed to ‘significant failures in local leadership and financial management’.

Its confirmation came as part of the final local government finance settlement.

Districts councils’ plea to raise their maximum council tax increase from £5 to £10 was rejected, with DLUHC arguing the current limit ‘strikes an appropriate balance between ensuring local authorities have access to sufficient resources to deliver local services while also protecting residents from excessive council tax increases’.

However, DLUHC agreed to increase the service grant by £19m and the rural services delivery grant by £10m following the consultation.

Councils will receive almost £60bn in total. 

A funding guarantee is in place for a minimum 3% increase in core spending power for every authority while the most deprived areas of England will receive 17% more funding per household than the least deprived.

Levelling up secretary Michael Gove said: ‘Every day councils across the country deliver for their communities and play a crucial role in driving forward levelling up.

‘This funding package represents an increase of more than 9% for councils on last year, ensuring a fair deal for local government that reflects the vital work councils do to provide key services on which we all rely.’

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