Almost one million housholds are facing a devastating council tax rise as Labour Party-run councils teeter on the edge of bankruptcy.
The rise to families would constitute a 15 percent increase on the council tax that they are already paying while Britain negotiates the cost of living crisis.
The councils of Bradford and Cheshire East may also have to issue section 114 notices as the local authorities fear that could soon be bankrupt.
They join councils including Birmingham, Nottingham and Woking which have already taken the extreme step.
Other authorities in the past have been permitted by ministers to increase council tax by up to 15 percent – adding hundreds to annual bills.
In April, the Government allowed Croydon to increase bills by 15 percent to pay off massive debts. Thurrock and Slough were both told they could put up bills by 10 percent.
Normally a council is unable to increase bills by more than five percent without holding a local referendum.
Michael Gove, the relevant minister, has not yet decided whether Birmingham and Nottingham will be allowed to raise taxes.
If Bradford and Cheshire East take the same step, he will have to decide on them. Together, these areas contain almost a million households.
The Local Government Association (LGA) warns that one in six councils – around 60 – are at risk of issuing a section 114 notice.
On Thursday a group of metropolitan authorities wrote to Rishi Sunak to warn him of a surge in effective bankruptcies unless he makes a last-minute intervention to boost next year’s financial settlement for local government.
Cheshire East Council said it faced potential bankruptcy due to the “devastating impact” of cancelling the northern leg of HS2.
Reacting to the latest financial position, Leader of the Opposition at Birmingham City Council, Conservative Councillor Robert Alden, called the Labour administration at the council “disgraceful”.
He said: “This is a truly tragic day for Birmingham residents. This finance report lays clear the impact of 11 years of Labour rule on our great city.
“It confirms Birmingham Labour are planning to set an unlawful deficit budget and it confirms that the Labour Cabinet plan to increase Council tax far beyond the current referendum limit of five percent, on top of the fact they have already increase it by around 46 per cent since they took control in 2012.
“It is now clear no service from the Council, no asset or community facility and no Council Tax bill is safe from this predatory Labour administration who have spent a year fiddling their fingers while they watched Birmingham City Council burn.
“Brummies can’t afford another minute of this disgraceful administration”.
