SURREY’s under-pressure councils are set to boost their coffers after being accepted on the Government’s Business Rates Retention pilot scheme – but taxpayers could still face a £100 a year council tax hike under plans to address a shortfall in social care funding.

Sajid Javid, the Secretary of State for Communities and Local Government, confirmed Surrey County Council would be among the 10 authorities involved in a pilot scheme allowing them to retain 100 per cent of any growth in business rates raised locally, at the end of last year.

Surrey’s district and borough-level authorities, including Waverley Borough Council, are also set to benefit from a share of the spoils from the scheme at a time when councils are under intense pressure from cutbacks to their central government funding settlements.

However, in a blow to taxpayers, the cabinet minister also announced local authorities will be allowed to raise council tax by up to 5.99 per cent next year, up from the current 4.99 per cent, after a further relaxation of the government-imposed cap to address shortfalls in funding for social care.

It means households across England could see their bills rise by up to £100 a year, which will also see councils increasing the charge without the need to hold local referendums, as was previously the case.

Mr Javid told the House of Commons all councils will be able to raise council tax by up to 2.99 per cent in 2018/19 to fund local services, one per cent more than this year.

On top of this, 152 councils including Surrey, will be able to increase tax by an additional three per cent to fund social care services.

This, Mr Javid said, would give local authorities, “the independence they need to help relieve pressure on local services” while “recognising the need to keep spending under control”.

It comes after Surrey County Council dropped a threatened 15 per cent council tax hike, and a resultant referendum, earlier this year amid accusations by Labour leader Jeremy Corbyn that the Tory council had agreed a “sweetheart deal” to be included in the Government’s rate retention pilot.

Responding to Mr Javid’s announcement, Surrey issued a joint statement on behalf of all borough and district councils in the county: “The Government’s announcement that Surrey’s councils have been successful in their bid to be a business rate retention pilot area is good news.

“The extra funding will help us to continue providing services in the face of rising demand but also assist us to work together and shape the services of the future around the modern needs of residents and promote economic growth.

“While this funding is welcome it is only for one year and it should be noted the Government’s ‘fair funding’ review will not be completed until 2020 – leaving a question mark regarding Surrey’s funding in 2019.”

A county council spokesman added it was currently unknown how much extra revenue the pilot scheme would generate for the county’s local authorities – but clarified that Surrey would only retain 100 per cent of the ‘growth’ in business rates under the scheme – rather than the entirety of business rates.

According to the latest budget figures, Surrey County Council is facing a £19million overspend in the current financial year despite already making millions of pounds worth of cuts to services for vulnerable and disabled adults, people with learning disabilities, community recycling centres and street lights.

•The Government also announced the precept cap for policing has been raised from the previous level of two per cent, paving the way for an increase of up to £12 on a band D council tax bill.

If the maximum increase is applied, the average council tax bill in that band would rise from £224.57 to £236.57 a year.

That equates to a 5.3 per cent increase to be applied to the policing element of council tax for all residents.

Surrey Police Crime Commissioner David Munro has started a public consultation, asking residents if they are prepared to pay more in council tax to sustain the county’s policing levels.

“It is my view if we are to continue giving residents an effective police service now and in the future, this rise in the policing element of council tax is necessary and the right option for the Surrey public,” Mr Munro said.

“Setting the policing element of the council tax is one of the key decisions a PCC has to make so it is really important to me to get the views and opinions of the people who will be paying it.

“I would ask everyone to take a minute to fill out this brief survey and let me know their views which can help me make my decision.”

•Go to www.surveymon key.co.uk/r/Consultation 201819 before Sunday, January 14