Huge council tax rises given the go-ahead under Labour are forcing some families to consider selling their homes because of sky-hill bills.

More than 85% of local authorities say they are in a dire financial position and more so since the Chancellor’s Budget in October and the local government finance settlement.

Councils can usually only increase council tax by up to 5% each year, but Angela Rayner, the Secretary of State for Housing, Communities and Local Government, has so far allowed six authorities to exceed the cap.

Now more than three million households face a battering from bills of up to 10%, just as many councils are also slashing their budgets for local services, such as weekly bin collections.

Birmingham, Bradford, Newham, Windsor, Maidenhead and Somerset are all councils given the green light by Ms Rayner in recent. weeks.

Birmingham City Council, Europe’s lagest local authority, said it is cutting £148 million from services and at the same time increasing its levvy on locals by 7.49%

Primary school teacher, Louise Eatock, told the Telegraph she is considering selling her three-bedroom home in Newham, Suffolk, after 22 years because of ever-rising council tax bills.

Ms Eatock, 52, recently lost her single person’s council tax discount, worth 25%, when her daughter turned 18, meaning the bills rocketed by £600 a year. Newmarket falls under two local councils, both of which plan to hike their tax by 2.99% and 4.99%.

She told the newspaper: “I exist month-to-month. Sometimes, I have to ask family members to help me out and this is made worse by council tax.

“It shouldn’t be the case that you’ve gone to university, got what society perceives as an important role and yet at the end of the day, you’ve got no money.”

Dawn Lindson, 44, from Broxtowe, Notts, lives in a Band E four-bed home and said her bill is already an “astronomical” £3,000 a year.

Ms Lindson said a postcode lottery means a nearby council charges nearly £400 less for the same sized property, leaving her seriously considering a move.

She said: “Why should I be paying the council tax on this property when I can get something similar, in an equally nice area and with considerably cheaper bills? I want better value for money.”

Andrew Dixon, chairman of campaign group, Fairer Share, said: “Council tax has become an outdated and deeply unfair burden on hard-working families, particularly at a time when so many are struggling to make ends meet.”

Mr Dixon added that the system was “regressive, penalising households in less affluent areas while offering breaks to those in the wealthiest postcodes”.

The Government has admitted some councils will be worse off after national insurance increases introduced in Rachel Reeves’s budget despite an increase in funding for local authorities.

Communities minister Jim McMahon said the 1.2% employers’ national insurance hike will outweigh extra money being given to local authorities in England by the Government, as he admitted the funding settlement was “good, but not perfect”.

He was asked by Conservative former health secretary Steve Barclay (North East Cambridgeshire): “Could he just take his opportunity, as he is at the despatch box, to confirm whether any council will be worse off when you take this settlement, netted against the additional cost of employer national insurance, and the additional costs of their suppliers’ national insurance?

“Because the reports that we have is a number of councils will be worse off.”

Mr McMahon said the Treasury had put forward a £515 million sum to be given to councils based on expenditure costs for services.

He told MPs: “Nobody’s going to pretend that this settlement fixes the system. What we want to try and do with the settlement is to stabilise the system so we get to a multi-year settlement, with those bigger reforms that really begin to stabilise.”

Mr Barclay replied: “I think what he is saying – I think it’s important to be clear – as a result of this financial settlement, a number of councils will be worse off.

“He explained the context of that, but he just confirmed expressly that councils will be worse off as a result of the tax rises the Chancellor has imposed which this financial settlement do not fully meet.”

“I think that’s true, to a point,” Mr McMahon conceeded.