With rising financial distress, six English councils have received permission to increase council tax by up to 10%, doubling the typical cap. Many councils requested increases beyond the 4.99% limit, reflecting a significant financial crisis influenced by years of funding cuts. Authorities, including Labour-run Bradford and Newham, and Lib Dem-controlled Windsor and Maidenhead, secured steep rises. Meanwhile, the government acknowledges the plight of councils while emphasizing taxpayer interests, indicating that severe financial decisions are necessary to rectify a failing system and stave off insolvency for struggling local authorities.
An unprecedented number of English councils are understood to have requested exceptional financial support from the government in recent months, enabling them to take out loans to prevent them slipping into insolvency.
The government was committed to keeping taxes on working people as low as possible but was under no illusions about councils' fragile financial state.
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