Angela Rayner has unleashed a new raid on Brits’ pockets with millions of people to be hit by council tax rises up to 10%.
Six struggling councils, which together serve more than two million people, have been granted permission to increase council tax beyond the established annual threshold of 5%.
Ms Rayner has allowed Bradford Council to increase the levy by a further 5%, while Windsor and Maidenhead Council and Newham Council can all hike bills by 4%.
The remaining councils, Birmingham, Somerset and Trafford, have been granted a further 2.5% uplift beyond the threshold.
Seeking to justify the move, Ms Rayner said in a written statement: “These are difficult decisions that Government has not taken lightly.
“We recognise the importance of limited increases in helping to prevent these councils falling further into financial distress – but we have been clear this must be balanced with the interests of taxpayers.”
She said the Government has agreed to a “limited” number of requests for council tax rises and in all cases have not agreed to the full amount sought.
Ms Rayner said: “Where we have agreed, it is only for councils with amongst the lowest levels of council tax, and where we expect, even after these increases, residents will still be paying less than the average compared with similar councils.”
The Secretary of State for Housing, Communities and Local Government confirmed that despite the increases, the overall national rise in council tax is not expected to exceed last year’s 5.1%.
Local authorities will have access to more than £69billion in funding this year, which represents a 6.8% increase in cash terms compared with 2024-25.
The settlement provides more than £2bn in direct grant funding above revenue received from council tax, with no council experiencing a reduction in core spending power.
Elliot Keck, Head of Campaigns at the Taxpayers’ Alliance thinktank, said: “Taxpayers will be expecting to see immediate results from the inflation-busting tax hikes that they’re being subjected to.
“Every year residents are being hit with ever higher bills, only to see depressingly little improvement in their local area.”
Analysis by the TaxPayers’ Alliance shared with the Telegraph found bills for the average Band D home in 21 areas look set to exceed £2,500 if councils increase their levy by the maximum. Bills will be more than £5,000 for the most expensive Band H houses, according to the thinktank.
Next comes Nottingham City Council on £2,656 and then Dorset on £2,622. Bristol is set to be fourth on £2,584 followed by Newark and Sherwood, with an anticipated council tax bill of £2,582.
Ms Rayner’s settlement with local authorities includes more than £2bn in direct grant funding. Billions has also been allocated to social care on top of millions towards helping councils manage the impact of Labour’s increases to employer national insurance contributions.