Nearly all local authorities in England planning council tax hike due to cash crisis

Posted On: 
8th February 2018

Cash-strapped local authorities are set to hike council tax bills for households in England amid funding pressures, according to a survey.

Council tax bills are set to rise from April.
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Charges are set to go up in 95% of councils, according to the 2018 State of Local Government Finance research.

The planned increases come amid 80% of councils fearing for their financial stability.

Jeremy Corbyn ally Chris Williamson calls for council tax to be doubled on high-value homes

Tory MPs blast Government over major council tax hike

90% of local authorities to increase council tax

Under central government rules, local authorities can raise council tax by 3% in line with inflation before a referendum of local voters needs to be called.

An additional "precept" can also be levied to raise funds to cover social care costs.

The survey found the biggest pressure on council budgets is children's services, then adult social care, and housing and homelessness.

Adult social care was the greatest long-term pressure, the survey found.


Meanwhile, Labour will today launch a drive to help councils bring public services in-house and boost local economies.

Shadow Chancellor John McDonnell will say his party will help councils set up new energy companies and ensure the provision of local services, with the involvement of councillors, unions, think tanks, and independent experts.

A new Community Wealth Building Unit will take inspiration from the model used in Labour-run Preston - which the party says returned almost £200m to the local economy and supported more than 1,600 jobs.

Addressing a conference in the Lancashire town later today, the Shadow Chancellor, will say austerity has “blighted” the budgets of councils, but that Labour cannot afford to wait until they are in power nationally.

“There are many creative solutions being used already, like in Preston, and we need to spread this inspiring work around other Labour councils now, so we can bring services back in house, stimulate the economy and provide decent jobs, extend ownership and control, and strengthen local democracy,” he will say.

“By working together to share these principles where Labour is already in power locally, we can sow the seeds of a country that works for the many, not the few.”