Council tax hikes planned across England

Nearly every household in England is facing inflation-busting council tax rises as local authorities try to ward off financial crisis.

Some 95% of councils in England are planning to increase council tax and service charges from April, in order to make ends meet.

The rises will add around £100 to the average annual bill for a Band D property.

The warning comes from the Local Government Information Unit (LGIU) thinktank, which gives a snapshot of the pressures facing councils.

It analysed responses from 113 councils – around one third of the total in England.

Where does the money go?

Council tax provides for many things in the community from social care, police and fire authorities, to rubbish collection and recycling, libraries and burials.

Authorities across the country are allowed to increase council tax by 3% (in line with inflation) without the need for a referendum.

However, many are planning to raise charges by the maximum 5.99%.

The greatest immediate pressure on budgets are in children's services, adult social care, and housing and homelessness.

Lord Porter, the Conservative chair of the Local Government Association (LGA), said the survey showed some councils were being pushed “perilously close to the financial edge”.

He emphasised the need to urgently address the £2billion funding gap in children’s services, citing some startling numbers:

• A child is referred to council children's services every 49 seconds
• Councils started more than 500 child protection investigations every day last year

Government response

England’s councils have had their funding from central government cut by 40% since 2010, and are calling for “a redesign of the financial system”.

Earlier this week, Northamptonshire county council admitted it was close to bankruptcy.

A spokesman said the ministry of housing and communities had “listened to representations made from councils and delivered on these with extra funding”.

Overall councils will see a real-term increase in resources over the next two years, he said, adding that more control had been given to councils over business rates raised locally so “millions of pounds” could stay in the community”.