In a statement to parliament earlier today, Communities Secretary Robert Jenrick confirmed that English councils would be permitted to raise council tax by up to 5 per cent in 2021/22.
Councils will be able increase bills by adding 2 per cent on bills, plus a further 3 per cent if they provide adult social care, with the increase billed at the beginning of the 2012/22 financial year in April.
Mr Jenrick said local authorities would be given the headroom to decide whether or not to enforce the rises, under a £2.2 billion annual funding settlement available to fund the provision of “critical” public services and councils were “not under any obligation to increase” bills.
If Swindon Borough Council wanted to increase bills by more than the amount the government stipulates, they must hold, and win, a referendum.
Labour have warned of job losses, service cuts and building sell-offs with shadow communities secretary Steve Reed said: “Perhaps one of the most shocking aspects of the settlement is the Government’s plan to force councils to hike up council tax while the country still faces an unprecedented health crisis and the deepest recession for 300 years,
“The Government is proposing a council tax hike over twice the rate of inflation. The Conservatives have decided to clobber hard-working families when their jobs and incomes are already under extreme pressure.
“In return, those taxpayers will get fewer services.”
