Council Tax: Dozens of local authorities admit they will increase council tax to cover Government reforms

Dozens of local authorities have indicated they will increase council tax to help fund improvements to health and social care services.

The BBC reports it wrote to 152 councils responsible for social care in England and 121 responded, with two-thirds saying they are considering increasing tax from next April. National insurance also rises that month.

The councils are waiting to make final decisions on any increases until the Government provides more detail on funding, which is expected next week.

The Institute for Fiscal Studies said in October that under current Government spending plans, a rise of at least 3.6% on council tax bills will be needed per year just for town halls to keep services running at the levels seen before the coronavirus pandemic.

But the researchers said this would likely be a minimum requirement, with extra cost pressures and demand potentially meaning bills could rise by up to 5% every year up to 2024/25.

And they said social care aims announced by the Government in September are currently underfunded and would cost £5 billion a year in the long term – almost three times the additional funding allocated over the next three years.

The Money and Mental Health Policy Institute, meanwhile, said in November its research indicated an estimated 2.8 million people with mental health problems across the UK have fallen into council tax debt during the pandemic.