“Local authorities are to be allowed to raise council tax by up to 5.99% next year, after a further relaxation of the government-imposed cap to address shortfalls in funding for social care.
Families across the UK could see their bills rise by up to £100 a year as a result of the announcement, which will also see councils increasing the charge without holding local referendums.
The move, which has been widely criticised and called “woefully inadequate” by leaders in the social care sector, could see the average band D council tax bill rising to £1,653.30. …. “
In a separate announcement, the DGLC announced that a pilot project will see 10 areas retain their full business rate contributions:
“Communities secretary Sajid Javid has today announced a shake-up of the formula for distributing funding to local authorities.
He has also set out plans to allow councils to retain 75% of their business rates and a 1% increase in council tax raising powers, revealing the local government settlement in the House of Commons.
Javid confirmed plans to end the revenue support grant and allow councils to retain 100% of local business rates by 2020 would be put on hold, over concerns that some councils could be left out of pocket.
Instead, he said there needed to be an “updated and more responsive distribution methodology”, and that councils would be allowed to retain 75% of business rates by 2020/21.
He said: “I am today publishing a formal consultation on a review of relative needs and resources. “I aim to implement a new system based on its findings in 2020/21.”
In addition, he announced 10 further councils would be taking part in a pilot to retain 100% of their business rates. …”