Millions of families could see their council tax bill rise by over £60 as it emerged that nine in ten local authorities are planning to hike charges by almost 4 per cent next year.

A quarter of the top 152 councils in England intend to increase their bills by around 3.9 per cent, just under the maximum 4 per cent allowed by the Government without holding a referendum.

It follows an average increase of 3 per cent this year, the largest so far since 2009, and follows successive years of cuts to local government funding by ministers.

But councils warned the additional tax, which includes a 2 per cent ring-fenced social care payment introduced by George Osborne, will still not be enough to cover the cost of caring for older people and keeping services running.