Six English councils granted permission to raise council tax bills by up to 10% | Local government

Six English councils have been given permission by ministers to draw up cap-busting council tax bill increases of up to 10% from April – twice the rate of the vast majority of authorities – in an attempt to avoid bankruptcy.

Record numbers of cash-strapped authorities requested approval for rises above the 4.99% council tax cap this year, amid increasing concerns over their future financial stability after more than a decade of central funding cuts.

An unprecedented number of English councils are also understood to have requested exceptional financial support from the government in recent months, enabling them to take out loans to prevent them slipping into insolvency.

Labour-run Bradford and Newham councils were given the green light to increase council bills by up to 9.99% and 8.99% respectively, while Lib Dem-controlled Windsor and Maidenhead, which asked for a 25% rise, can raise bills by up to 8.99%.

Lib Dem-run Somerset and Labour-controlled Trafford will be able to put up bills by 7.4%, as can Labour-run Birmingham, which is in special measures after declaring effective bankruptcy in 2023.

A number of other upper-tier councils – including Tory-run Hampshire, Slough and Cheshire East – had bids to raise bills by more than the current 4.99% cap turned down. Hampshire has vowed to hold a local referendum on a 15% increase anyway.

The secretary of state for housing, communities and local government, Angela Rayner, said the government was “committed to keeping taxes on working people as low as possible” but was “under no illusions” about councils’ fragile financial state.

“Tough decisions are needed across local government to fix the broken system we inherited,” she said in a parliamentary 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 added.

“We have agreed to a limited number of requests and in all cases have not agreed to the full amount requested. 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.”

At a national level, the overall council tax increase was not expected to exceed last year’s rise, Rayner said. Councils with permission to break the cap would be expected to provide schemes to protect vulnerable residents from the impact of the rise.

However, rises are unlikely to be popular with local ratepayers. A 9.9% increase in Bradford would mean a £170 increase on a Band D property to £1,872. Bradford council said council tax levels would still be lower than in neighbouring authorities.

Hampshire county council, which had requested a 14.99% council tax rise – equivalent to a £230 increase on a band D property – has previously vowed to hold a local referendum at a cost of £2m. The council’s leader, Nick Adams-King, said: “We’ll now consider our next steps in our cabinet meeting tomorrow [Tuesday].”

Most upper-tier councils are struggling with the cost of massive increases in demand for social care, homelessness and special educational needs provision. Several have declared effective bankruptcy in recent years, including Birmingham, Croydon and Thurrock.