Fears mount of even higher council tax rises as local authorities face £4bn funding gap until 2025

• The Local Government Association said the rise is down to an ‘inflationary storm’

Households may see council tax hikes and cuts to services as town halls claim they face a £4billion financial hole.

The warning comes in a report published today by the Local Government Association (LGA). In July it said the shortfall facing councils in England over the next two years was £3billion.

But the LGA’s fresh analysis said this had increased by £1billion – and claimed the cost of delivering services will soar by £15billion from 2021/22 to 2024/25.

Households may see council tax hikes and cuts to services as town halls claim they face a £4billion financial hole

In a submission to Chancellor Jeremy Hunt before next month’s Autumn Statement, the LGA called for an immediate cash injection

The LGA put this down to an ‘inflationary storm’ and warned council tax may need to be hiked along with other bills.

But the intervention sparked anger from critics, who accused council chiefs of wasting huge sums on higher salaries, pointless pet projects and wokery.

In a submission to Chancellor Jeremy Hunt before next month’s Autumn Statement, the LGA called for an immediate cash injection.

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