Council tax in England will see a maximum increase for the third straight year, with 88% of upper-tier authorities set to hike rates by 4.99%. This move comes as councils grapple with funding cuts over the last decade, leading to significant financial strain. Six councils have been granted permission to increase taxes by up to 10% in an effort to stave off bankruptcy. The rising cost of adult and children's care services has contributed to these fiscal challenges. Despite these hikes, many authorities remain at risk of financial insolvency.
Local authorities across England have faced extensive funding cuts, leading nearly 90% of them to increase council tax by 4.99% to manage rising service costs.
The continual rise in council tax reflects a decade of underfunding and essential spending shortfalls, with many councils on the verge of financial crisis.
Labour-run Bradford and Newham have been allowed to impose council tax hikes of up to 9.99% and 8.99%, respectively, due to fiscal distress.
With rising operational costs and increasing demands, such measures are seen as crucial for local authorities to sustain essential services without resorting to bankruptcy.
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