Changes to council tax increase limits “doesn’t bring any reassurance” to cash-strapped Liverpool Council according to the city Mayor.
As part of the wide ranging Autumn statement announced by Chancellor of the Exchequer Jeremy Hunt yesterday, the UK Government will allow local authorities like Liverpool to increase their council tax by 5% each year from April 2023 without the need for a referendum. The government said this will give councils “greater flexibility to set council tax levels based on the needs, resources and priorities of their area, including adult social care.”
Under the current rules, councils need to hold a referendum if they want to increase tax beyond 3%, which includes 2% for general spending and 1% on social care. On Wednesday, Liverpool Council announced its proposals to plug the “horrific” £73m funding gap it needs to fill to balance its books.
