Council tax expected to rise by 5% a year

Council tax is expected to rise by 5% annually to fund local services, with additional increases predicted for police funding. While councils can opt for lower raises, the Spending Review anticipates them raising tax to the maximum. The review allocates a 1.1% grant increase to local governments, but overall spending power is expected to rise by 2.6%, incorporating funds from sources like business rates. Authorities may surpass the 5% cap with local referendum or central government approval.