Local Government Secretary James Brokenshire announced the council tax hike this week. Local authorities are being given the freedom to increase the bills to provide an extra £1.3 billion cash injection to help both social care and roads. Mr Brokenshire said the amount this will take the overall fund to £46.4 billion next year and will “pave the way for a more confident, self-sufficient and reinvigorated local government”.
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Town halls will have the power to increase council tax bills by three percent in April.
People living in Band D homes will see an increase from £1,671 to around £1,778.
MPs voted on Tuesday in favour of the new plans.
Mr Brokenshire said he had listened to councils who wanted more of a say over the money they raised.
He also revealed he plans to allow some authorities to keep the business rates they collect.
Mr Brokenshire also promised to review the way money is split between areas.
He says the current method is “far too complicated and frankly out of date”.
The minister said: “Strong, vibrant resilient communities are more than ever key to unlocking a brighter future for our country.
“I hold these dedicated public servants in the highest regard and have faith in them to rise to the challenges that lie ahead to see their people and places flourish with no-one left behind.”
But the council tax increase has faced backlash already.
Labour’s communities spokesperson Andrew Gwynn hit back, saying councils had been “hung out dry” by the government over the last nine years.
He said: “There is no new new money, no new ideas, no recognition of the dire situation facing councils.”
The Commons Public Accounts committee also criticised the Government for pursuing “short-term bailouts”.
They said they have left many town halls in “an extremely worrying position”.
The committee called for a “meaningful long-term financial plan” instead.
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