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HomePoliticsThousands and thousands face council tax rise of greater than 5%

Thousands and thousands face council tax rise of greater than 5%

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Thousands and thousands of households in England are dealing with council tax rises above the traditional restrict, after the federal government allowed six areas to bypass a 5% cap on will increase.

Normally native authorities with social care duties can solely increase council tax yearly by as much as 4.99% with no referendum, whereas others can enhance it by as much as 2.99%.

However Deputy Prime Minister Angela Rayner has confirmed that Bradford Council can be allowed a rise of 10%, whereas Newham and Windsor and Maidenhead will all be allowed a 9% rise – Birmingham, Somerset and Trafford can enhance their payments by 7.5%.

Rayner stated the will increase had been essential to “forestall these councils falling additional into monetary misery”.

She stated: “We recognise the significance of restricted will increase in serving to to forestall these councils falling additional into monetary misery – however we have now been clear this have to be balanced with the pursuits of taxpayers.”

The federal government blocked a number of councils from elevating taxes above 4.99%, together with Hampshire, which had requested to be allowed a 15% enhance.

A press release on native authorities funding additionally confirmed that councils can have entry to greater than £69bn this 12 months – a 6.8% enhance in money phrases in comparison with 2024-25.

The settlement means no council will see a discount in core spending energy.

Greater than £2bn of this may come from direct grant funding above income acquired from council tax.

The announcement additionally confirmed councils will get extra cash to handle the price of will increase to employer Nationwide Insurance coverage contributions.

The highest-up brings further funding for subsequent 12 months to round £2bn, on prime of £1.3bn introduced at October’s Price range.

Particular allocations to mayoral mixed authorities stay at zero, which means they’re anticipated to generate funding via different means.

Native Authorities Affiliation chair Louise Gittins stated council funds stay “extraordinarily difficult” and the additional cash subsequent 12 months “nonetheless falls brief of what’s desperately wanted”.

She stated: “This monetary 12 months due to this fact stays extraordinarily difficult for councils of every kind who now face having to extend council tax payments to usher in desperately wanted funding subsequent 12 months but might nonetheless be pressured to make additional cuts to companies”.

She known as for a “extra sustainable future funding system” in addition to “vital and sustained will increase in general funding” for councils within the upcoming spending evaluate.

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