Chancellor Jeremy Hunt has announced a likely 5% hike in council tax, as well as swingeing public spending cuts, as part of a dramatic Autumn Statement.

Mr Hunt today confirmed that he has lifted the threshold for council tax increases permitted without the need for a local referendum, from a total of 3% to 5%. If exercised by most councils, it could increase the average Band D Council Tax level above £2,000 for the first time.

‘This will give local authorities greater flexibility to set council tax levels based on the needs, resources and priorities of their area, including adult social care,’ Treasury documents state.