Millions face up more than 5% council tax growth
Millions of houses in England are facing council tax above the general limits, the government allowed six areas to bypass 5% cap on growth.
Local officials with social care duties usually can increase council tax to 4.99% every year without a referendum, while others can increase it up to 2.99%.
But Deputy Prime Minister Angela Rener has confirmed that Bradford Council will be allowed to increase by 10%, while Newahm and Windsor and Madenhead will all be allowed to grow by 9% – Birmingham, Summerset and Trafford increased their bills 7.5% Can
Rener said that “growth was important to prevent these councils from falling into financial crisis”.
He said: “We recognize the importance of limited growth in helping these councils stop falling into financial crisis – but we are clear that it should be balanced with the interests of taxpayers.”
The government stopped several councils from increasing taxes above 4.99% including Hampshire, allowing an increase of 15%.
A statement on local government money It also confirmed that the council would have access to more than £ 69bn this year – 6.8% increase in cash terms compared to 2024–25.
The agreement means that no council will see a decrease in the power to spend the core.
It will come from the Revenue Fund above the revenue received from the council tax over £ 2BN.
The announcement also confirmed that the councils will get an additional £ 5BN to manage the cost of growth for employers national insurance contribution.
The top-up brings additional funds for £ 2BN for the next year at the top of £ 1.3BN declared in the October budget.
Special allocation for the mayor joint officials remain at zero, which means that they are expected to generate money through other means.
Louis Gitins, president of the local government association, said that the council’s finance remains “extremely challenging” and the next year additional funds are still less than “strict needs”.
He said: “This financial year is so challenging for the councils of all those types, who are now facing to increase tax bills to bring in strict requirement next year, yet to further cut services. Can be forced “.
He called for the “more sustainable future funding system” for the councils in the review of upcoming spending to “significantly and continuous increase in overall funding”.
