LOCAL authorities in Wales will be able to increase council tax by more than five per cent without seeking permission from the Welsh Government, it has been confirmed.

Although there is no official limit on how much Welsh councils can increase council tax by at the start of a financial year, an informal five per cent cap has been in place, with councils wishing to put rates up by more than this required to seek Welsh Government permission.

But in their budgets for 2019-2020, Newport and Caerphilly councils are both planning on increasing rates by 6.95 per cent, while rate-payers in Monmouthshire are facing a 5.95 per cent increase.

South Wales East AM Mohammad Asghar raised questions over the issue in the Assembly on Tuesday.

Addressing the Assembly's 'Trefnydd' - or business manager - Rebecca Evans - the Conservative AM said: "Although I'm advised that there is no official cap on what councils can raise taxes by, there is an informal limit of five per cent set.

"Newport City Council intend to raise council tax in the city by 6.95 per cent - nearly seven per cent - increasing the burden on already hard-pressed local residents of this great city.

"Could we have a statement on whether Newport City Council requires Welsh Government permission to raise council tax above this limit, or is this five per cent cap just another example of word and not action by your government?"

Ms Evans replied: "The setting of council tax rates and levels is very much an issue for each local authority to decide independently of Welsh Government interference."

Torfaen and Blaenau Gwent councils are yet to announce their plans around council tax for the coming financial year.