FAMILIES across the Cotswolds are expected to be hit by council tax increases next year which could be as high as five per cent – at a time when many are struggling with the cost of living crisis.

The Chancellor of the Exchequer Jeremy Hunt announced there will be more flexibility for local authorities to set their council tax rates.

The Autumn Statement says councils in England will be able to set tax rises of up to 3% per year from April 2023, without the need for a referendum.

Also, councils with social care responsibilities, such as Gloucestershire County Council, will be able to increase the adult social care precept by up to 2% per year.

The Chancellor says 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.

This could mean the portion of the council tax bill which goes to Shire Hall could rise to 1,523.86 a year for a band D property, an extra £72.50.

The county council was given the opportunity to comment on the announced changes. But they declined so it is still uncertain how much council tax will rise next year.

Cotswold District Council finance cabinet member Mike Evemy (LD, Siddington and Cerney Rural) said it was a tough time for everybody including local authorities. The council’s budget consultation is currently underway and they are considering tax rises and increases to parking and green waste charges.

He said: “What has been announced today doesn’t change much for district and borough councils in Gloucestershire. There doesn’t appear to be any new money for local government outside of social care. District councils don’t appear to be getting anything.

“They are being asked to work with an overall total settlement which is the same as before we had inflation of 11.1%. They thought inflation would be 2.5%, it’s not.”