Sheffield City Council has hiked its council tax just 0.01% under the cap set by the government.
This will mean that the council will receive 301.3 million income via the council tax which will be 17.2 million more than in 2024/25.
The raise comes as part of a national move by the government allowing councils to increase their taxes with places like Bradford being allowed to increase by 10% whereas Maidenhead, Newham and Windsor will both be allowed a 9% rise.
Cllr Zahira Naz said: “We have big challenges ahead. The cost of living crisis is still hitting families hard, demand for social care is increasing and years of underfunding mean that our services are still stretched.
“But there is hope, there is now real opportunities to build and invest in the services that people rely on.”
In regards to the concerns about the cost of living crisis, she said: “We work very closely with the cost of living team at the council referring people so that they can get the financial advice, energy support and crisis help they desperately need.”
There will be a 2% precept that will go towards adult and child social services.
The council tax raise will vary depending on which band households find themselves in:
Band A will have to pay: £1,352.66
Band B will have to pay: £1,578.10
Band C will have to pay: £1,803.55
Band D will have to pay: £2,028.99
Band E will have to pay: £2,479.88
Band F will have to pay: £2,930.76
Band G will have to pay: £3,381.65
Band H will have to pay: £4,057.98
Mavis Coy, a resident from Walkley in Sheffield, said: “I don’t think we’ll see improvements, I think it will get worse.”
Although she argues: “if you want the services, you have to pay for them.”
The raise sits just 0.1% under the cap set by the government.
In a press release from the Local Government Association they stated that: “Councils stand ready to work with the Government on creating an improved and a more sustainable future funding system that works for the whole of local government.”
Councillor Louise Gittins, Chair of the Local Government Association, said: “Councils also recognise that having to increase council tax places yet more financial burden on households.”
Cllr Tom hunt reassured the city by saying: “We now have a government that is at our side rather than at our throat.”