THE total amount of council tax paid in England is set to rise by more than £1 billion next year but will still not be enough to cover government cuts and increased staff wages, according to new research revealed today.

Town halls across the country are set to take advantage of new freedoms to increase bills by up to 5.99 per cent.

But the Local Government Association (LGA) warns the hikes will fail to offset £1.4 billion in funding cuts from central government and additional costs from paying staff the national living wage.

The LGA said that despite the inflation-busting increases, households face further cuts to services like parks, children’s centres, libraries and repairs to potholes.

Communities Secretary Sajid Javid announced in December an increase in the maximum council tax hike permitted without triggering a local referendum. It now stands at 2.99 per cent.

England’s 152 social care authorities – the county and unitary councils, and metropolitan boroughs which take the lion’s share of the tax – are allowed an additional 3 per cent precept to help fund adult care.

The research found that 64 councils are considering or have approved increasing council tax by the maximum 5.99 per cent for 2018/19, while 147 of the 152 social care authorities are set to charge a precept, raising an extra £548 million for care.

But the LGA said the extra money from the social care precept will be “wiped out” by an estimated £600 million extra needed to cover increases in the national living wage.

LGA chairman Gary Porter said the shortfall meant “councils will have to continue to cut back services or stop some altogether to plug funding gaps.”