Failing councils told they can increase tax by 8%

Taxes could be increased by 8% in April by Thurrock Council due to its "severe financial failure", Mr Gove said

Three local authorities in England have been told they can increase council tax by 8% because of their "severe financial failure".

Levelling Up Secretary Michael Gove said Thurrock Council, Slough Borough Council and Woking Borough Council could make use of "additional flexibilities".

Slough and Thurrock were told they could make an 8% increase without holding a referendum, while Woking was given a 10% limit.

Thurrock, in Essex, built up about £1.5bn in debts following a series of failed investments in solar farms.

Woking has debts of about £2bn.

Mr Gove said: "Councils in significant financial failure can make use of any additional flexibilities provided to support their financial recovery and going forward the government will consider all reasonable steps to protect both national and local taxpayers and ensure councils are acting responsibly."

All three councils have issued Section 114 notices in the last two years, effectively declaring themselves bankrupt.

Thurrock and Slough already increased council tax by 9.99% last year.

Essex County Council cabinet member for finance Chris Whitbread described the announcement from Mr Gove as "disappointing"

Mr Gove also said his department was making a total £64bn available to all councils, which he said would increase their core spending power by 3%.

Other councils not in the same financial difficulty, but which provide social care - such as Essex County Council - were told they could raise tax by a maximum 5% next year.

Chris Whitbread, the Conservative cabinet member for finance at Essex, said Mr Gove's provisional settlement plan was "disappointing".

"The impacts of high inflation and interest rates are still affecting families and demand pressures are still very much with us," he said.

“There is the ever-present need to continue to look after our most vulnerable; ours is an ever-ageing, ever-growing population with ever-more complex needs.

"But we are as committed to protecting Essex’s vulnerable children and older people as ever."

Councils are due to set their budgets early next year.