Council tax hike to hit almost one million households

Almost one million housholds are facing a devastating council tax rise as Labour Party-run councils teeter on the edge of bankruptcy.

The rise to families would constitute a 15 percent increase on the council tax that they are already paying while Britain negotiates the cost of living crisis.

The councils of Bradford and Cheshire East may also have to issue section 114 notices as the local authorities fear that could soon be bankrupt.

They join councils including Birmingham, Nottingham and Woking which have already taken the extreme step.

Other authorities in the past have been permitted by ministers to increase council tax by up to 15 percent – adding hundreds to annual bills.

In April, the Government allowed Croydon to increase bills by 15 percent to pay off massive debts. Thurrock and Slough were both told they could put up bills by 10 percent.

Normally a council is unable to increase bills by more than five percent without holding a local referendum.

Michael Gove, the relevant minister, has not yet decided whether Birmingham and Nottingham will be allowed to raise taxes.

If Bradford and Cheshire East take the same step, he will have to decide on them. Together, these areas contain almost a million households.