Over 90% of councils plan maximum tax hikes as they warn of MORE service cuts after Reeves’s budget

Nine in ten local councils in England plan to raise council tax by the maximum amount this April, according to new research.

The County Councils Network survey revealed that 93 per cent of local authorities will implement the highest possible increase, up from 68 per cent last year.

Despite the planned rises, councils warn they will still need to make cuts to essential services.

Many authorities say they are now in a worse financial position than before Chancellor Rachel Reeves’s autumn Budget, which included an additional £1.3billion for local Government funding.

Several struggling councils are seeking permission for even steeper increases, with the Royal Borough of Windsor and Maidenhead proposing the highest rise at 25 per cent – equivalent to £451 on average bills.

Cllr Barry Lewis, finance spokesman for the County Councils Network, said: “Virtually all county and unitary councils will have to raise their council tax by the maximum permitted in March, but even this will not be enough. Many are now more likely to have to set out further reductions in adult social care, school transport, libraries and more.

“Considering there is very little fat left to cut from many of these services already, a further reduction will have a material impact on our residents.”

Which other councils are proposing tax hikes over five per cent?

• Birmingham City Council is considering a 9.99 per cent increase for the second consecutive year, which would mean a £400 rise over two years for Band D properties.
• Bradford Council, which received a £220million Government bailout last year, has requested approval for a 15 per cent increase.
• North Somerset Council has also proposed a 15 per cent increase, adding £256 to average annual bills.
• Hampshire County Council, serving 1.4 million residents, is seeking permission for a 15 per cent rise in 2025/26, which would add £230 to Band D properties.

All these higher increases would need approval from Angela Rayner, the Secretary of State for Housing, Communities and Local Government.

Councils seeking rises above 4.99 per cent can exploit a legal loophole by threatening to issue a Section 114 notice, effectively declaring bankruptcy.

Around 4.4 million residents across eight local authorities could be affected by these above-limit rises.

Benjamin Elks from the TaxPayers’ Alliance said: “Local taxpayers are fed up with having to pick up the tab for reckless councils.”

The Government says it will “only consider agreeing to requests for rises above five per cent in exceptional circumstances”.

Despite the planned tax increases, councils warn they will still need to implement significant service cuts. Research by the County Councils Network found that nearly a third of councils warned the service cuts would be “severe”.

Six in ten councils say they are more likely to lay off staff, while half are considering reductions to adult social care provision.

Some 42 per cent of councils are looking at reducing street lighting and climate change initiatives. Libraries face cuts from 35 per cent of authorities, while school transport services are also under threat.

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All surveyed councils reported that the £515million Budget funding to offset national insurance increases would not cover their extra costs.

Lewis said: “The Government is cherry-picking what areas to focus funding on. It is clear now that the vast majority of county and unitary councils are in a worse position than before the Autumn Budget and finance settlement.”

Lewis called for a rethink of the finance settlement proposals, saying: “The Government must ensure that all parts of the country that are facing significant financial challenges receive a fair share of resources rather than selecting a handful of councils to benefit.”

The survey shows a bleak outlook for council finances, with just one out of 32 responding councils expressing confidence in balancing their Budget by the end of Parliament.

Three-quarters of councils believe they can balance their books this year, but the long-term picture is far more concerning.

Peter Oakford, Conservative Deputy Leader of Kent County Council, described the situation as “horrible”.

He said: “I’m a resident of Kent… it impacts everybody, we’ve done it year on year, council tax has gone through the roof.”

Ann Taylor, Chair of the Kent Integrated Care Alliance (KICA) said: “We understand the cost pressures, but if they don’t fund the social care provision appropriately, then we are heading for disaster.

“I thought last year was the worst it’s ever been – staffing issues, workforce, overseas recruitment, lack of funding, but it has got worse.

“I think with the Budget announcements we are going into a social care that is not fit for purpose.”