Leader pledges to 'look extremely hard' to avoid 5% council tax rise in Northumberland

A new rule announced in Chancellor Jeremy Hunt’s autumn statement means councils with social care responsibilities will be allowed to increase council tax by up to 5% without holding a local referendum.

With council tax bills for Band D properties in Northumberland standing at more than £2,000 in every parish, homeowners could potentially face bills increasing by more than £100.

However, Cllr Glen Sanderson said the authority would do what it could to avoid such a costly hike.

At a meeting of the council’s cabinet, the Conservative leader said: “Let me say that we will be looking extremely hard at how we can avoid having to use the 5% increase when it comes to council tax.

“It is extremely important that we recognise that all our residents are facing difficulties, mainly due to inflation. We will help if we possibly can.”

The council’s deputy leader, Cllr Richard Wearmouth added that there was cause for optimism for Northumberland residents.

He said: “There is a lot going on in the economy. People will look at that budget today and see the things that the chancellor has needed to do, but there is a reason for great optimism in Northumberland.

“Wages are going up, unemployment is at a pretty low level and there is no projection that will change in the years to come. We will continue with our priorities to make sure we’re protecting those that need our help the most, grow our economy and drive value for money in the council.”

Mr Hunt said the package of measures contained ‘difficult decisions’. They included a reduction in the threshold for the 45p top rate of income tax, down from £150,000 to £125,140.

Meanwhile the income tax personal allowance, higher rate threshold, main national insurance thresholds and the inheritance tax thresholds will be frozen until April 2028 and he windfall tax on oil and gas giants will increase from 25% to 35% and a 45% levy on electricity generators will help raise an estimated £14 billion next year.