NEARLY seven in 10 households in England face their third year of maximum council tax hikes.

Analysis published today shows that 88 per cent of upper-tier authorities in England will impose the  4.99 per cent rise this year: the most allowed without triggering a local referendum.

The 4.99 per cent cap, which includes a 2 per cent adult social care precept, has been in place over the last three years.

Figures show that it will be the third year in a row that bills have gone up by at least the maximum legal amount for 68 per cent of top-tier authorities; just nine councils are raising bills by less than 4.5 per cent this year.

The Local Government Association, which represents councils across England, said: “Councils continue to face severe funding shortages and soaring cost and demand pressures on local services.

“This means that many councils have faced the tough choice about whether to increase bills to bring in desperately needed funding to provide services at a time when they are acutely aware of the significant burden that could place on some households.”

The government has provided exceptional financial assistance to 30 councils this year.

Bristol City Council leader Tony Dyer last week told the Commons housing, communities & local government committee that, despite many residents living in homes with the lowest council tax, there are many people who are unable to pay their bills.

He said: “We need to support these people, but that is being done, essentially, out of local authority budgets.”

A Ministry of Housing, Communities & Local Government spokesman said: “While councils are ultimately responsible for setting their own council tax levels, we are clear that they should put taxpayers first and carefully consider the impact of their decisions.”