The Government will give all local authorities in England the power to raise council tax by up to two per cent in the next financial year, while some will be permitted to increase rates by as much as four per cent.
Local authorities with adult social care responsibilities will be able to increase council tax rates by up to four per cent from April 2020.
The hike will mean households in the average Band D council tax, which currently pay £1,750, are to face an added £70 on their bills, seeing costs rise to £1,820.
Meanwhile, homes that fall into the more expensive Band H could be landed with even higher costs of up to £140 in April.
The maximum increase is lower than last year, which saw local authorities with adult social care responsibilities able to raise council tax by up to five per cent, but it is well above inflation, which stood at 1.5 per cent in November 2019.
Funding for social care
The announcement was made by housing secretary Robert Jenrick in a statement published on the Ministry of Housing, Communities and Local Government (MHCLG) website.
Jenrick claimed the rises will allow local authorities access to an additional £1.5 billion for social care, with authorities able to increase council tax by up to two per cent each without holding a referendum.
While these rises can be made without consulting residents, the council would need to hold a referendum for any increases that are greater than this.
Mr Jenrick said: “We recognise the importance of addressing the challenges in our social care system.
“This is why we want to build the same level of cross-party consensus on social care as we have with the NHS, to make far-reaching changes to the way these services are financed and delivered.
“In the meantime, we will do all we can to support local authorities.”
Further details on how much your local authority will increase bills by are expected to be announced prior to the rises coming into force in April 2020.