The leader of a flagship Tory council has quit, blaming Jeremy Hunt for forcing council tax rises on town halls.
Bournemouth, Christchurch and Poole Council chief Drew Mellor slammed “Treasury orthodoxy” which he said appeared "determined that the future of local government is one of maximum council tax and cuts to services".
He said his aim for “a low council tax, high ambition approach to local government” was “at odds” with ministers’ plans.
The minority Conservative administration faced opposition after it amended its draft budget last month to limit bill increases to 3%, rather than the maximum 4.99% allowed.
In a scathing resignation letter, Mr Mellor said: “I’ve continually pushed for finding new, sustainable income sources as opposed to the easy solution of selling off the family silver and putting the financial burden onto our residents…
“And we’ve proven that successive budgets can be balanced whilst freezing council tax.
“However, now successive local government ministers, our senior officers and our auditor are determined to hit the taxpayer…
“Therefore with a heavy heart but proud record of investing in our incredible region, I am today resigning as leader of BCP Council with immediate effect.”
Tory politicians in Westminster have sometimes sought to shift blame onto councils for tax rises but Mr Mellor said the fault lies with the Government for squeezing their budgets.
He said a recent letter from their auditor saying any “attempt not to seek a full Council Tax rise” would be “vetoed” was “the final straw”.
It comes as an analysis revealed households are facing major council tax hikes in April as three quarters of cash-strapped local authorities plan to increase bills by up to 5%.
Research by the County Councils Network found 84 out of the 114 local authorities in England who have already published their 2023/34 budget proposals plan to raise council tax by the maximum level.
Town hall leaders have begged for more cash in the upcoming Budget as they grapple with "the most difficult circumstances in decades", with inflation close to a 40-year high and spiralling demand for social care.
Without council tax rises, they will be forced to slash frontline services, the CCN said.
It comes after Chancellor Jeremy Hunt relaxed the cap on raising bills above 3% in last year's Autumn Statement, allowing town, county and city halls to raise them by up to 5% without holding a referendum.
Rishi Sunak is under pressure from his own MPs to slash taxes - despite the economic chaos triggered by Liz Truss's plans for unfunded tax cuts.
He has already faced unhappiness from local government officials after his levelling-up plans triggered an outcry, with the Tories accused of overlooking bids from deprived areas in favour of wealthier places.
Mr Mellor’s resignation highlights growing frustration among local leaders over the squeezes to council budgets.
Cllr Sam Corcoran, Labour Vice-Chairman of the County Councils Network and Leader of Cheshire East Council, said: “With inflation reaching levels not seen for nearly 40 years and with demand-led pressures for care services showing no sign of abating, local authority leaders are setting their budgets in the most difficult circumstances in decades.
“We all recognise the cost-of-living crisis is impacting on every household in the country and disproportionally on those with low incomes, but we have little choice but to propose council tax rises again next year, with many councils reluctantly opting for maximum rises.
"With the financial situation for local authorities looking extremely tough for the next few years, we will be calling on the Chancellor for further help in the March Budget."
A Department for Levelling Up spokesperson said: “We recognise the pressures councils are facing and have made almost £60 billion available over the next financial year - a 9% increase on 2022-23 – with the most deprived areas of England receiving 17% more per household this year than the least deprived.
“Our approach to council tax balances the need to deliver vital services while protecting residents from excessive increases and we expect local authorities to take into consideration the challenges many households are facing.”
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