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.
