You are here: Home - Household Bills - News -

Nearly all councils in England plan to raise council tax

Written by: Paloma Kubiak
A hefty 95% of councils in England plan to raise council tax and 93% said they will need to increase charging in order to “make ends meet” this year.

The 2018 State of Local Government Finance survey revealed that “councils are on the edge” as two thirds will be forced to dip into their reserves.

The survey, conducted by the Local Government Information Unity (LGiU) and The Municipal Journal also found that 80% of councils fear for their financial sustainability.

It comes as Northamptonshire County Council recently took the decision to freeze all spending but councils fear this is “just the tip of the iceberg”.

While three quarters of councils are managing to maintain frontline services over the past year, there’s growing evidence that 2018/19 budgets will see reduced activity within parks and leisure (53% of councils), adult social care (40%), and youth centres (34%). Adult social care remains the top long-term pressure for councils, followed by housing and homelessness.

Local councils in England have already been given the authority to raise council tax by up to 5.99%, adding more than £100 to the average property’s bill in April.

Jonathan Carr-West, Chief Executive of LGiU, said: “Councils are on the edge. They are for the most part holding services together (though a significant minority are not). But they can only do this by raising council tax, increasing charging and draining their reserves.

“The system is unsustainable and needs far more fundamental reform than is presently on offer. It’s simply not acceptable that we don’t know how local government will work post 2020. Councils are calling for assurances around funding for the next three years and for a fundamental redesign of the finance system. At present government is offering neither. That has to change.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
RateSetter launches ISA paying up to 6%

Peer-to-peer lending platform RateSetter has launched an Innovative Finance ISA offering investors returns of up to 6% depending on how...