Millions of UK households warned as '93 per cent' council tax rule looms

Over 90 per cent of councils are planning maximum tax hikes as they warn of MORE service cuts after Labour Party Chancellor Reeves's budget. The County Councils Network survey revealed that 93 per cent of local authorities will implement the highest possible increase, up from 68 per cent last year.

The CCN, which surveyed its 37 members, reported that 85% of county and rural local authorities are in a worse financial position than before the autumn Budget. The survey found that 93% of county and unitary councils will have to raise council tax by the maximum permitted 4.99% in "all but exceptional circumstances".

But that would not be enough to balance budgets with "several" county and unitaries saying they will have to cut services "more significantly" in 2025-26. Barry Lewis (Con), finance spokesperson for the CCN, has spoken out.

READ MORE: UK warned 'huge' Atlantic snow storm heading to Britain on two dates

READ MORE: Government breaks silence over handing free BBC TV licences to 'all' state pensioners

READ MORE Foreign Office warns UK tourists to 'prepare' and says call 11-digit number

He said: "Given that many of these services are already stretched, further cuts will have a significant impact on our residents." Cllr Lewis called on the government to provide evidence for the Fair Funding Review, adding that "nothing published so far" justifies the ministers' decisions.

He added: "If this trend continues, it will push many councils to the brink. Our survey shows that only one council is confident of balancing its budget by the end of this parliament. This should be a wake-up call for the government."

A spokesperson for the Ministry of Housing, Communities & Local Government said: "Despite the challenges we’ve inherited, the government is focused on rebuilding local government from the ground up. We are allocating £69bn in funding for England’s councils in 2024-25, which represents a 6% cash increase in councils' core spending power.

"No council will see a decrease in their core spending power, and the majority will see a real-terms increase compared to 2024-25 when the exact numbers are confirmed next week."