Residents in part of Lincolnshire are likely to see their district council's share of council tax go up by 2.99% next year. The draft budget for 2025/26 was agreed by South Holland District Council's cabinet at a meeting on Tuesday,

Six councils have got permission to raise council tax above 4.99% as local authorities struggle with rising costs of social care and homelessness.

Just 15 councils are planning increases below 4.99 per cent, with levels ranging from 4.98 per cent in Barnet, north London, and Warrington, Cheshire, to 2.00 per cent in Wandsworth, south London. Only six other councils are planning to increase council tax by 4 per cent or less.

A vast majority of councils have signalled they will apply a maximum council tax increase of at least 4.99% this year.

It is thought that the increase could generate an additional £11m for the local authority at a time when a third of the city’s finances are being spent solely on social care. It is the third annual budget Liverpool Council will raise the council tax rate to 5%, with former Communities Secretary Michael Gove paving the way in 2023 for the increase.

Southampton City Council leaders have proposed a balanced budget without exceptional financial support from government – but residents will face a council tax increase.