
Local authorities in England have warned that a ?13 billion funding gap means council tax bills could rise dramatically by the end of the decade.
New powers will allow local authorities to raise council tax by 2 per cent - a potential rise of almost ?200 a family - but even then, councils say, they will be unable to make up the difference.
The shortfall is driven by cuts in grants from Whitehall, and by the escalating cost of adult social care, which is predicted to outstrip available funding by ?2.9 billion by 2020, according to the Local Government Association (LGA).
Even taking advantage of the full surcharge, under powers announced by Chancellor George Osborne in his spending review, councils will still only bring in just ?1.6 billion more by 2020.
That would be at a cost of ?96 a year to the average Band D council tax payer.
On top of the expected 1.99% annual rise in core council tax, the average Band D bills could soar by ?195 a household by the end of the decade and still not close the hole in budgets, according to the LGA.

Councils say the escalating cost of adult social care will add substantially to the shortfall Credit: PA

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