FEARS have been raised over an increase in council tax bills for residents following the Chancellor’s autumn statement.

Local authorities will be allowed to increase council tax by up to five per cent a year from April 2023 – without needing to hold a referendum.

It will be three per cent for local authorities, but an additional two per cent for those with social care responsibilities.

Warrington Borough Council will be considering the ‘implications’ for the authority from the autumn statement.

Deputy leader Cllr Cathy Mitchell said: “We know that although councils can increase their council tax, and that council tax is an important funding stream to keep services running, it simply isn’t a sufficient solution to keep councils running effectively long-term.

“Allowing councils to raise their council tax by a percentage also means that those councils who are already better funded and have higher council tax rates, will benefit more than other areas, like Warrington, who are low-funded and have comparatively low council tax rates across the north west.

“The decisions not to raise income tax thresholds and to reduce energy support will not help many people, particularly our vulnerable residents during the cost of living crisis. The support also given to businesses at a time of economic recession appears weak and inadequate.

“We will now consider the implications for us from the autumn statement, including decisions we will need to make around council tax.”

Cllr Bob Barr, leader of Warrington’s Liberal Democrats, says local authorities around the country are ‘facing a collapse’ of non-statutory services and are struggling to look after their most vulnerable residents.

He added: “The Chancellor’s autumn statement allows them to raise council tax by up to five per cent without needing a local referendum.

“Given this is less than half the inflation rate, few responsible authorities will be able to raise their council tax by less while protecting services.

“Warrington, the sixth worst funded authority in the country, will have little choice.

“While international factors have played a part, the chaotic Conservative management of the economy since 2015 has clearly made matters worse.”

Furthermore, while the North West Pensioners Association welcomes the reinstatement of the triple lock for pensioners, it believes that it ‘should have never been taken away in the first place’.

Chair Derek Barton said: “Even with the increase, with inflation still rising, rising food prices, rising energy prices and higher council taxes pensioners will be worse off than pre-pandemic levels.

“The increase must include pension credit and guaranteed pension credit otherwise the worst-off pensioner will lose more than they have gained.

“The Chancellor stated that there will be an increase in the budget for care for the elderly and disabled, again this will not cover the actual cost of care for those that need it the most.”

Cllr James Jamieson, chairman of the Local Government Association, has also issued a statement.

He said: “Local government is the fabric of the country, as has been proved in the challenging years we have faced as a nation.

“It is good that the Chancellor has used the autumn statement to act on the LGA’s call to save local services from spiralling inflation, demand, and cost pressures.

“While the financial outlook for councils is not as bad as feared next year, councils recognise it will be residents and businesses who will be asked to pay more.

“We have been clear that council tax has never been the solution to meeting the long-term pressures facing services – particularly high-demand services like adult social care, child protection and homelessness prevention.

“It also raises different amounts of money in different parts of the country unrelated to need and adding to the financial burden facing households.”

Delivering his autumn statement in the House of Commons on Thursday, Chancellor Jeremy Hunt said the Government’s priorities are stability, growth and public services.

He added: “In the face of unprecedented global headwinds, families, pensioners, businesses, teachers, nurses and many others are worried about the future.

“So today we deliver a plan to tackle the cost-of-living crisis and rebuild our economy.

“There is a global energy crisis, a global inflation crisis and a global economic crisis.

“But the British people are tough, inventive and resourceful.

“We have risen to bigger challenges before.

“We aren’t immune to these headwinds but with this plan for stability, growth and public services, we will face into the storm.

“There may be a recession made in Russia but there is a recovery made in Britain.”