Giving councils the ability to raise council tax by up to five per cent will lead to "hardship" for households, a councillor has warned.
Chancellor Jeremy Hunt increased the threshold by which councils can raise council tax each year without a local referendum to five per cent in his autumn statement. Currently, local authorities can increase rates by up to three per cent without putting the decision out to a vote.
If councils chose to increase by five per cent, it would cause the average band D council tax bill to increase by £98 a year. In Northumberland, which has higher than average bills, it would increase by more than £100 a year.
The leader of Northumberland Labour, Coun Scott Dickinson, has said Mr Hunt's decision meant ordinary people would have to foot the bill.
He said: "In his autumn statement, the Chancellor still failed to allocate the greater tax burden to those with the broadest shoulders.
“Instead he said local authorities could increase council tax by up to three per cent with another two per cent for social care. This means ordinary people and families could face yet another hike in council tax, which many can ill afford.
“National high demand services such as adult social care, child protection and homelessness should be paid for at a national level. The result of the Chancellor's decision is more difficult choices for councils and possible hardship for local people.
“The autumn statement was perhaps not as bad for councils as might have been predicted, but it's not good news for Northumbrian individual and families who will be asked to pay more."
It comes after the Conservative leader of Northumberland County Council, Glen Sanderson, said the authority would look "extremely hard" at ways to avoid the maximum five per cent increase in council tax.
Speaking just hours after Mr Hunt's announcement, Coun Sanderson said he recognised residents were "facing difficulties" and that the council would help 'if it possibly can'.
Residents in Northumberland, along with other parts of the North East, are already facing average increases of around £6.72 a year after Northumbria Police and Crime Commissioner Kim McGuinness said residents would need to pay more to fund the force.
Inflation and other cost increases mean the force needs to find more than £8m in savings. This figure would rise to £12m if the public do not back a rise in the precept.
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