Council tax to rise by maximum in nearly all areas adding £103 to average bill, analysis shows

Almost all top-tier councils are planning to increase council tax by the maximum amount allowed to avoid financial trouble, according to new analysis.

Out of 136 authorities that have shared their plans, 128 (94 per cent) plan to raise bills by 4.99 per cent in April - the largest increase permitted by the Government without a local referendum.

The County Councils Network (CCN), which shared these figures, said that last year at this time, 75 per cent of councils planned to impose the maximum increase. They explained that council tax decisions are influenced by the financial pressures councils continue to be under, despite the Government's recent emergency £600 million boost.

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The CCN's 37 member councils, serving 47 per cent of England's population, received £240 million of the extra Government funding for 2024/25 but are planning savings of over £1 billion within the year. These councils, a mix of county and unitary authorities, are reportedly still facing a combined funding gap of £1.1 billion over the next two years.

Sam Corcoran, Labour leader of Cheshire East Council and CCN vice-chairman, said councils have to make "some of their toughest decisions" due to rising costs and increased demand for social care services. He said that the extra money from the Government would help a lot and keep services running. But, because council finances are not very strong, council tax bills had to go up to make sure everything keeps working.

Mr Corcoran said: "No council leader takes the decision to raise council tax lightly as we know this will add to the cost of living for