Council tax bills in Cornwall look set to rise in April after the council’s leading Cabinet approved proposals to raise the authority’s share by the maximum 4.99%.

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

Local councils were previously only allowed to raise their share of the bills by 2.99% which included a 1% precept for social care. Any higher increases would have to be subject to a referendum.

However in his autumn statement last month Chancellor of the Exchequer Jeremy Hunt announced a change to the rules which set the limit at 4.99%, including the payment for social care. He said that this would help local councils which were facing budget pressures, although it means that pressure now falls on households which are already feeling the pinch.

Cornwall Council previously announced that it was facing a budget gap of £62million but deputy leader David Harris said today that the Chancellor’s announcements meant that the council had been able to produce an “almost” balanced budget for 2023/24.

Cllr Harris said that ideally he would not have wanted to propose the maximum council tax increase but he said that the current circumstances of increasing demand and rising inflation meant that the council had little choice.

He said: “Significantly the Government is allowing local authorities with responsibility for social care to increase council tax by up to 4.99% inclusive of a 2% adult social care precept without the need for a referendum.

“With ongoing pressures in terms of demand and price increases the recommendation with regard to council tax is to increase it to the maximum we are permitted without a referendum, 4.99%. This decision was not made lightly, I would love to come up with a figure that is less than the maximum, but we need to make sure that all services are protected.”

He added that if the council did not raise its share of the council tax bills by the maximum rate then it would not only reduce its spending power for 2023/24 but also for subsequent years.

Cllr Harris also said that the council’s consultation on its budget plans had also revealed that many people were in favour of paying more council tax if it will protect services. He said that the council had received 831 responses and that 60% had said that they would be willing to pay more than the previously proposed increase of 2.99%.

Councillors were told that the 4.99% increase would mean a Band D property seeing an increase of £85.68 per year. Full council tax bill rises will not be known until Devon and Cornwall Police and town and parish councils decide how much their share will be for 2023/24.

Cornwall Council’s consultation on the budget and council tax proposals is set to continue into the new year and the budget proposals, including savings which will have to be made, will go before the council’s overview and scrutiny committees in the new year.

A final decision on the budget and council tax is expected to be made by the full council in February before bills are sent out in time for April 2023.