Increases in Council Tax on cards amid warning of 6bn black hole in local authorities | Personal Finance | Finance [Video]

Householders face big increases in Council Tax bills over the next two years – at least – amid reports of a £6 billion black hole in funding, say local authorities.

Increases are needed to cope with the increasing demand for social care for the elderly and disabled as well as support services for children.

At the same time, many councils across the country are on the brink of bankruptcy, which will force punishing cuts to services without extra funding.

Jeremy Hunt’s Spring budget included small print figures showing the amount of money raised through Council Tax is set to rise from £46.9 billion this year to £57.5 billion by 2028-29 – a rise of £10.6 billion a year or almost 23 percent.

The Local Government Association (LGA) has produced a new White Paper which argues that councils will need a £6 billion increase in funding over the next two years alone.

Separately, a number of organisations, including the Institute …