COUNCIL tax payers in Dudley and Sandwell face a possible increase of up to five per cent next year after the Chancellor announced how much money local government can charge. 

Rishi Sunak MP has capped the amount councils can charge up to two per cent but increased a separate payment for adult social services by up to three per cent.

In a statement to parliament he said the rise and would increase local authorities’ spending power.

He told MPs: “Local authorities will have extra flexibility for Council Tax and Adult Social Care precept which together with £300 million of new grant funding gives them access to an extra billions pounds to fund social care.

“And this is on top of the extra billion pound social care grant we provided this year, which I can confirm will be maintained into next year.”

Sandwell and Dudley can now choose to increase council tax bands up to the new limit or hold a referendum if they want to charge more.

In Sandwell, a five per cent rise would see a tax bill  for a band D home of £1,560 a year –  a hike of £74.28. 

In Dudley, a similar increase would mean band D households paying an extra £69.08 a year  – taking their bill  to £1,450.68. 

Households will also have to pay additional charges for the fire and police services which will add hundreds of pound to their final bill.

Those increases are not controlled by councils and will be set by the two emergency services

The council tax rates for both councils are expected to be set in February next year.