Cornwall residents bracing for maximum council tax rise

The county council's cabinet has agreed to raise council taxes by the maximum of 4.99%

Cornwall residents could see their bills increase by the legal maximum in April after cabinet approval.

The 4.99% rise includes a 2% precept, which will be ringfenced to fund adult social care.

The cabinet will also look to double council tax for second homes as soon as it can, but has declined to ringfence the extra £27m for affordable housing.

The council tax increase is subject to consultation and scrutiny before a final decision is made in February.

Councillors were told at Friday's cabinet meeting that a Band D household would pay £85.68 more a year, reported the Local Democracy Reporting Service.

But full council tax bill rises will not be known until Devon and Cornwall Police and town and parish councils decide on their share for 2023/24.

Councils had previously been limited to levies of 2.99% with anything more subject to a vote.

Second homeowners could face double council tax but the money will not be ringfenced for affordable housing

Chancellor Jeremy Hunt changed the rules in the Autumn statement to help councils deal with budget pressures.

Cornwall Council, which faces a deficit of £62m, said the decision would allow for an "almost" balanced budget.

Councillor David Harris, deputy leader, said increasing demand and rising inflation left "little choice" but to impose the maximum increase to "protect services" next year and in subsequent years.

The cabinet is also expected to take advantage of a new rule allowing authorities to charge double council tax on second homes "as soon as is legally possible".

But it refused to commit to spending the extra £27m on affordable homes and it will go into the general budget instead.

Independent councillor Tim Dwelly and Independent group leader Loic Rich questioned this decision.

Olly Monk, cabinet member for housing, said land and planning permission were more of an issue than funding.

The new rules, which pending Royal assent could come into force by April 2024, would also enable extra levies on homes left empty for a year, instead of two.

Former MP Andrew George has found that the government paid £384m over the last 10 years to support second homes and holiday homes in Cornwall, twice the investment in new affordable housing.