THE government was pressed today to provide a fair funding deal for councils as many struggling local authorities prepare to raise taxes.

Most councils plan to impose a council tax hike of at least 4.99 per cent this year — the highest allowed without triggering a local referendum — new analysis has shown.

Figures gathered from 139 top-tier local authorities show that 85 per cent are planning the rise.

Including the six councils that were given permission to raise taxes even more, the proportion is pushed to nearly 90 per cent.

The analysis by the Press Association agency showed that out of the councils which have disclosed plans, 122 are proposals awaiting approval from full council and 17 have been confirmed.

In London, 23 of the 27 councils declared their intention to opt for a 4.99 per cent rise.

In north-west England, 19 out of 21 councils that confirmed plans decided on the rise, along with 16 out of 20 councils in the south-east, and eight out of 10 in the East Midlands.

Somerset council has been granted permission to increase tax by 7.5 per cent, Newham 8.99 per cent, while Trafford and Birmingham have been allied a 7.49 per cent rise.

Windsor & Maidenhead, in Berkshire, has been cleared to increase by 8.99 per cent.

Only 15 councils were found to be planning increases below the maximum threshold.

Local Government Association economy and resources board chairman Cllr Pete Marland said: “Councils recognise that having to increase council tax, to bring in desperately needed funding, places yet more financial burden on households. 

“We remain clear to government that it is not the answer to meeting the long-term pressures facing high-demand national services and needs to be urgently addressed in the upcoming Spending Review.”

Unison head of local government Mike Short said: “After years of inadequate funding, council finances are in a perilous state. 

“That’s left the majority of authorities with no option but to seek the maximum revenue possible from council tax.

“This is what happens when Conservative governments put the squeeze on local authority budgets. 

“Now local taxpayers, many of whom can ill afford huge rises in their bills, are paying a heavy price.

“Local government needs to know its future is secure. Ministers must come up with a sensible, multi-year funding settlement or many more authorities will go under.”

The government has been contacted for comment.