Under the newly announced Pride in Place programme, backed by record £5bn investment, communities will be given new powers to seize boarded shops, save derelict pubs and block gambling and vape shops in order to revitalise their high streets.
These local authorities include Nottingham, Bristol, Gateshead and Dorset, where locals pay some of the highest council tax in Britain.
The average Band D council tax set by local authorities in England for 2025-26 is £2,280, an increase of £109 on the 2024-25 figure of £2,171.
The areas with the highest and lowest council tax in Britain
A number of cash-strapped councils are also set to receive millions as part of the fund.
It comes as the Conservative council opposition called for the Government to effectively refinance Birmingham City Council’s debt by scrapping or reducing interest rates on the council’s Public Works Loan Board debt.
John Cotton, Leader of Birmingham City Council, which has been plagued by piles of rotting rubbish for months due to a prolonged bin workers’ strike, said: “[Yesterday’s] Government announcement that eight communities across Birmingham are at the front of the queue for the new Plan for Neighbourhoods Fund, is a huge boost for the people of this city.
Elliot Keck, head of campaigns at the TaxPayers’ Alliance, said: “Local taxpayers already paying the top end of the council tax scale may well raise an eyebrow when they see their town hall receiving even more cash.
“Ministers need to carefully review the finances of any local authority in line for extra resources to ensure that this policy doesn’t simply reward the profligate and wasteful.”
Council tax is just one of the ways local authorities fund services and many, including the LGA, have called for a sustainable finance model, rather than a reliance on council tax increases.
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Read More“Greater financial certainty and a simpler funding system are important. However, all councils remain under pressure and face having to increase council tax bills to try and protect services at the same time as making further cutbacks.“A sustainable, long-term financial model for local government must lead to all councils having adequate resources to meet growing cost and demand pressures.”
Rachel Reeves said: “We’re giving local people the power to transform their hometowns. Giving them more control of how money is spent where they live.”
The Chancellor added: “This £5bn investment doesn’t just reverse decades of underinvestment in our public infrastructure – it cuts through the bureaucracy by giving local people the power to deliver the change they want to see.”
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