Most local authorities in England who replied to a BBC poll were considering an April tax increase, while others were not ruling it out. The blow comes as working households face a Health and Social Care Levy NI rise to pay for social care.

       The Government says it will raise an extra ￡36billion over three years.

       But local leaders say just ￡5.4billion of that is earmarked for social care - making council tax hikes inevitable as they try to make up the shortfall. They should hear next week what funding they will receive from central Government.

       Ministers look likely to allow a maximum two per cent council tax increase - plus one per cent for authorities responsible for social care.

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       The Institute for Fiscal Studies (IFS) said a 2.8 per cent council tax rise would add around ￡40 on average to household bills.

       The Local Government Association's Shaun Davies said: "Council tax has never been the solution to the long-term pressures facing local services.

       "Increasing council tax to pay for social care is a double whammy for hard-pressed residents, who may also feel they are shelling out twice for a service."

       County Councils Network chairman Tim Oliver said: "Leaders proposing rises of the maximum permitted will be doing so as they have little choice other than to substantively reduce local services."

       IFS economist Kate Ogden said: "The biggest budget uncertainty is Covid, with falls in incomes and significant council spending on the public health response." Some 121 of 152 councils responsible for social care responded to the BBC.