Millions of people in England are facing council tax rises above the normal limit, after the government allowed six areas to bypass a 5% cap on increases.
Usually local authorities with social care duties can only raise council tax every year by up to 4.99% without a referendum, while others can increase it by up to 2.99%.
But the government has now confirmed that Bradford Council will be allowed an increase of 10%, while Newham and Windsor and Maidenhead will both be allowed a 9% rise.
Birmingham, Somerset and Trafford will be allowed to increase their bills by 7.5%.
Deputy Prime Minister Angela Rayner said the councils were selected as they had “amongst the lowest levels of council tax” – even with the sharp increases.
She said: “We recognise the importance of limited increases in helping to prevent these councils falling further into financial distress – but we have been clear this must be balanced with the interests of taxpayers.”
The government blocked several councils from raising taxes above 4.99%, including Hampshire, which had asked to be allowed a 15% increase.
The six councils permitted to raise council tax above 5% without a referendum together serve around 2.5 million people.
The government says in total councils in England will have £69bn to spend next year, a 6.8% rise on this year, assuming they all hike council tax by their maximum permitted amount.
This includes an increase in central government funding of £2bn compared to this year, including £1bn for social care.
However, £515m of this extra funding has been earmarked to offset the effect of the rise in National Insurance (NI) contributions from April.
Specific allocations to mayoral combined authorities remain at zero, meaning they are expected to generate funding through other means.
Labour’s manifesto promised longer council tax plans, setting budgets for at least two years.
The government is also consulting on introducing a stronger link between overall funding and deprivation from 2026, as part of a wider shake-up of council financing.
Local Government Association chair Louise Gittins said council finances remain “extremely challenging” and the extra money next year “still falls short of what is desperately needed”.
She said: “This financial year therefore remains extremely challenging for councils of all types who now face having to increase council tax bills to bring in desperately needed funding next year yet could still be forced to make further cuts to services”.
She called for a “more sustainable future funding system” as well as “significant and sustained increases in overall funding” for councils in the upcoming spending review.
