Most Areas Set To Increase Council Tax By At Least 4.99% From April | Politics Newsnews24 | News 24
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Most areas set to increase council tax by at least 4.99% from April | Politics Newsnews24

Most councils are set to increase council tax by the maximum amount of at least 4.99% from April.

Government figures released on Wednesday show 85% of the 139 top-tier authorities in England that have proposed or confirmed rises so far are planning to do so by 4.99%.

If local authorities want to raise council tax by 5% or more, they have to carry out a local referendum, under normal circumstances.

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However, six councils in severe financial trouble have been granted permission to increase council tax beyond this level without a vote.

When they are included in the figures, the proportion of local authorities increasing council tax above 4.99% rises to nearly 90% of councils.

A total of 17 councils wanting to increase council tax by 4.99% or more have confirmed their intentions, 122 are awaiting approval and 14 are yet to declare their intentions, analysis by the PA news agency shows.

Image:
Birmingham is one of six councils that have been allowed to raise their council tax by more than 4.99% without a referendum. Pic: PA

Councils are facing rising costs, especially in areas where they legally have to provide services such as social care, education, housing and waste services.

As they face more pressure to pay for those services, it is unlikely the council tax rises proposed by senior councillors will be rejected by full council ahead of budgets having to be set by the end of February, or March for some.

Some councils are planning increases below 4.99% – but only 15.

For example, Barnet, north London and Warrington in Cheshire are planning 4.98% increases, while Wandsworth in south London is only planning a 2% rise.

Just seven councils are planning to increase council tax by 4% or less.

They are: Kensington and Chelsea (4%), Doncaster (3.99%), North East Lincolnshire (3.98%), Essex (3.75%), Rotherham (3%), Lincolnshire (2.99%) and Wandsworth (2%).

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Social care cuts in the UK

The six councils granted permission to increase council tax by more than 4.99% are:

Bradford 9.9%

Birmingham 7.49%

Newham, London 8.99%

Somerset 7.5%

Trafford, Greater Manchester 7.49%

Windsor and Maidenhead 8.99%

The Resolution Foundation said the poorest fifth of households across the UK paid 4.8% of their income on council tax in 2020-21, up from 2.9% in 2002-3.

The thinktank identified this share of income was three times more than the 1.5% spent by the richest fifth.

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