Council tax set to rise by 4.99% in Dudley

Bosses have announced controversial plans to increase council tax by the maximum amount without triggering a referendum, taking advantage of a Government decision relax laws on tax hikes.

Councils had previously only been allowed to increase the amount by four per cent a year but can now go further in order to fund social care.

Budget proposals published in November, before the Government's announcement, had suggested Dudley Council would opt for a four per cent rise. The 4.99 per cent increase would mean the average household paying £1.12 extra each week from April.

Three per cent will go towards social care and two per cent on funding other services.

However, the plans look set to spark a row at Dudley Council House as opposition councillors slammed the move.

The Labour-controlled council insisted the increase is necessary due to its dire financial state which has left it needing to save £26 million over the next three years.

But the UKIP group insists the hike of almost five per cent is going too far.

Labour could fail to get the proposal passed as it does not command a majority at the council house.

For that to happen it would require the Conservatives and UKIP to join forces to outnumber Labour members and block the move.

Dudley Council's finance boss Councillor David Sparks said: "Any proposed increases in council tax are never taken lightly but we continue to find ourselves in unprecedented times of financial pressure as a result of reduced funding from national Government."