Newcastle residents are set to be hit with a major increase to their council tax bills next year.

City council bosses are planning to impose an increase of almost 5%, which will mean an annual increase of up to £169 for households.

Chancellor Rishi Sunak announced in his spending review last week that local councils would be invited to increase council tax by a maximum of 5%, including a 3% precept ringfenced to pay for adult social care, without requiring a referendum.

And under Newcastle City Council’s draft budget plans for 2021/22, civic centre finance chiefs have proposed a 4.95% rise.

Here is what that will mean for the yearly bills for each housing band – excluding any additional increases to police and fire precepts that could still be added:

A council report said there was “no choice” but to enforce the huge rise, due to the mounting costs of a social care crisis and the added devastation of the Covid-19 pandemic.

It added: “In effect, the council and the city’s council taxpayers are being asked to take responsibility for the continuing national failure to deliver a sustainable approach to social care funding.

“This leaves the council with no choice but to apply the adult social care precept, in full, in addition to the proposed 2% council tax rise, as set out in our draft financial plan.

“To help set a balanced budget, this will increase our income by £5.6 million which will be used to avoid making further reductions to services beyond those set out and contribute to the delivery of vital social care services.”

The council is also planning to impose a heavier council tax premium on long-term empty homes – 100% for those empty for between two and five years , 200% between five and ten years, and 300% for those vacant for more than a decade.

That change is expected to generate an additional £144,500 of income for the council.

Council leader Nick Forbes accused the government of “forcing council tax rises and threatening pay freezes for some of our most valued key workers”, warning that “the austerity of the last decade is far from over”.

He said: “Newcastle has lost £305 million since 2010, £2,270.92 per household, and Coronavirus has cost councils across the country over £11 billion this year alone. The government has so far refunded less than half of that.

“They have done nothing to fundamentally change the fact that councils will be forced to make severe cuts in 2021 to balance their books.”