City council tax will rise by 4.99%
Council tax in Hull is to rise by 4.99% this year, the maximum amount without a public vote.
It means owners of a Band D property in the city will be paying £1,784.42 in council tax, £84.81 more than the previous year.
The increase includes 2% to pay for adult social care.
Council leader Mike Ross said: "This is a budget that is designed to work for the city and that is what the voters of Hull elected us to do, and that is what we are doing with this budget."
According to the Local Democracy Reporting Service, more than £28m has been earmarked for fixing Hull's bridges.
Other capital expenditure includes £10m to Hull Maritime Museums, £2m for the Guildhall roof and £2m for the Albion Square development (£16m over next four years).
The budget also sets out plans to expand a Domestic Abuse Victim Support Team.
The Labour opposition group proposed amendments to the Lib Dem budget, including free parking on Sundays in December, the doubling of the funds for Warm Spaces and increased library opening times.
Described by the Labour leader Daren Hale as "brilliant initiatives", the proposals were rejected in a vote.
Listen to highlights from Hull and East Yorkshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
Council tax in Hull to rise by 4.99% again
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Universal Credit and PIP cuts halted as Starmer announces benefits U-turn
DWP disability benefits changes will not be applied to people who currently receive the personal independence payment (Pip), after the Government made concessions to Labour rebels on controversial welfare reforms. A letter from Work and Pensions Secretary Liz Kendall to MPs said adjustments to Universal Credit would also see incomes protected. The announcement comes after crisis talks with backbenchers, with some 126 MPs within the party signing an amendment that would halt the legislation in its tracks. Sir Keir Starmer's Universal Credit and Personal Independence Payment Bill has its second reading on Tuesday, the first opportunity for MPs to support or reject it. A spokesperson for Number 10 said: 'We have listened to MPs who support the principle of reform but are worried about the pace of change for those already supported by the system. I've made it clear: I won't vote for any cuts to PIP. We should be building a system that lifts people up — not taking vital support away from those who need it most. — Imran Hussain MP (@Imran_HussainMP) June 26, 2025 'This package will preserve the social security system for those who need it by putting it on a sustainable footing, provide dignity for those unable to work, supports those who can and reduce anxiety for those currently in the system. 'Our reforms are underpinned by Labour values and our determination to deliver the change the country voted for last year.' The Government's original package restricted eligibility for the personal independence payment (Pip), the main disability payment in England, and limited the sickness-related element of universal credit. The PIP Cuts DWP Welfare Bill must be pulled. I've signed an amendment to the Bill alongside 100+ calling for a pause and rethink. The Government must #PullTheBill and #StopTheCuts to #PIP#York — 💙Rachael Maskell MP (@RachaelMaskell) June 25, 2025 Existing claimants were to be given a 13-week phase-out period of financial support in an earlier move that was seen as a bid to head off opposition by aiming to soften the impact of the changes. In her letter, the Work and Pensions Secretary said: 'We recognise the proposed changes have been a source of uncertainty and anxiety. 'We will ensure that all of those currently receiving PIP will stay within the current system. The new eligibility requirements will be implemented from November 2026 for new claims only. 'Secondly, we will adjust the pathway of Universal Credit payment rates to make sure all existing recipients of the UC health element – and any new claimant meeting the severe conditions criteria – have their incomes fully protected in real terms.' She said a ministerial review would ensure the benefit is 'fair and fit for the future' and will be a 'coproduction' with disabled people, organisations which represent them and MPs. 'These important reforms are rooted in Labour values, and we want to get them right,' she said. The change in Pip payments would protect some 370,000 existing claimants who were expected to lose out following reassessment. If the legislation clears its first hurdle on Tuesday, it will then face a few hours' examination by all MPs the following week – rather than days or weeks in front of a committee tasked with looking at the Bill. The so-called 'reasoned amendment' tabled by Treasury select committee chairwoman Dame Meg Hillier had argued that disabled people have not been properly consulted and further scrutiny of the changes is needed. She said: 'This is a good deal. It is massive changes to ensure the most vulnerable people are protected… and, crucially, involving disabled people themselves in the design of future benefit changes.' While the concessions look set to reassure some of those who had been leading the rebellion, other MPs remained opposed before the announcement. The Disability Benefit Cuts Bill has been published. On average PIP recipients will lose £4,500 a year. These are the deepest cuts to disability benefits since George Osborne - impacting 3 million people. This won't create jobs, it will create poverty. MPs must vote against. — Neil Duncan-Jordan MP (@NeilForPoole) June 18, 2025 Speaking before the concessions were revealed, Rachel Maskell said: 'As the Government is seeking to reform the system, they should protect all disabled people until they have completed their co-produced consultation and co-produced implementation. 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'The only way to avoid a catastrophe today and in the future is to stop the cuts altogether by halting the Bill in its tracks.' Recommended reading: Labour MPs rebel over DWP disability benefits cuts HMRC urging parents to claim £2,000 tax-free childcare Child Trust Funds worth £1.4bn in unclaimed accounts The Tories described concessions as 'the latest in a growing list of screeching U-turns' from the Government. Shadow chancellor Mel Stride said: 'Under pressure from his own MPs, Starmer has made another completely unfunded spending commitment. 'Labour's welfare chaos will cost hardworking taxpayers. 'We can't afford Labour.'
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Government announces concessions to welfare bill after talks
People who currently receive the personal independence payment (Pip) will continue to do so after the Government made concessions to Labour rebels on controversial welfare reforms. A letter from Work and Pensions Secretary Liz Kendall to MPs said adjustments to universal credit would also see incomes protected. The announcement comes after crisis talks with backbenchers, with some 126 MPs within the party signing an amendment that would halt the legislation in its tracks. Sir Keir Starmer's Universal Credit and Personal Independence Payment Bill has its second reading on Tuesday, the first opportunity for MPs to support or reject it. A spokesperson for Number 10 said: 'We have listened to MPs who support the principle of reform but are worried about the pace of change for those already supported by the system. 'This package will preserve the social security system for those who need it by putting it on a sustainable footing, provide dignity for those unable to work, supports those who can and reduce anxiety for those currently in the system. 'Our reforms are underpinned by Labour values and our determination to deliver the change the country voted for last year.' The Government's original package restricted eligibility for the personal independence payment (Pip), the main disability payment in England, and limited the sickness-related element of universal credit. Existing claimants were to be given a 13-week phase-out period of financial support in an earlier move that was seen as a bid to head off opposition by aiming to soften the impact of the changes. In her letter, the Work and Pensions Secretary said: 'We recognise the proposed changes have been a source of uncertainty and anxiety. 'We will ensure that all of those currently receiving PIP will stay within the current system. The new eligibility requirements will be implemented from November 2026 for new claims only. 'Secondly, we will adjust the pathway of Universal Credit payment rates to make sure all existing recipients of the UC health element – and any new claimant meeting the severe conditions criteria – have their incomes fully protected in real terms.' She said a ministerial review would ensure the benefit is 'fair and fit for the future' and will be a 'coproduction' with disabled people, organisations which represent them and MPs. 'These important reforms are rooted in Labour values, and we want to get them right,' she said. The change in Pip payments would protect some 370,000 existing claimants who were expected to lose out following reassessment. If the legislation clears its first hurdle on Tuesday, it will then face a few hours' examination by all MPs the following week – rather than days or weeks in front of a committee tasked with looking at the Bill. The so-called 'reasoned amendment' tabled by Treasury select committee chairwoman Dame Meg Hillier had argued that disabled people have not been properly consulted and further scrutiny of the changes is needed. She said: 'This is a good deal. It is massive changes to ensure the most vulnerable people are protected… and, crucially, involving disabled people themselves in the design of future benefit changes.' While the concessions look set to reassure some of those who had been leading the rebellion, other MPs remained opposed before the announcement. Speaking to the PA news agency before the concessions were revealed, Rachel Maskell said: 'As the Government is seeking to reform the system, they should protect all disabled people until they have completed their co-produced consultation and co-produced implementation. 'I cannot vote for something that will have such a significant impact … as disabled people are not involved, it is just a backroom deal.' One MP said that ministers would need to 'go back to the drawing board' to make the Bill acceptable. Another said they expected the legislation would get through second reading if the Government conceded the key sticking points relating to existing Pip claimants, the health element of universal credit and a policy consultation. 'It would need to be in the Bill, not just a commitment,' they said. Speaking in the Commons on Wednesday, Sir Keir told MPs he wanted the reforms to reflect 'Labour values of fairness' and that discussions about the changes would continue over the coming days. He insisted there was 'consensus across the House on the urgent need for reform' of the 'broken' welfare system. 'I know colleagues across the House are eager to start fixing that, and so am I, and that all colleagues want to get this right, and so do I,' he said. 'We want to see reform implemented with Labour values of fairness. 'That conversation will continue in the coming days, so we can begin making change together on Tuesday.' There was a mixed reaction among charities to the prospect of concessions. Learning disability charity Mencap said the news would be a 'huge relief to thousands of people living in fear of what the future holds'. 'It is the right thing to do and sends a clear message – cutting disability benefits is not a fair way to mend the black hole in the public purse,' director of strategy Jackie O'Sullivan said. But the MS Society urged rebels to hold firm and block the Bill, insisting any Government offer to water down the reforms would amount to 'kicking the can down the road and delaying an inevitable disaster'. Head of campaigns at the charity, Charlotte Gill, said: 'We urge MPs not to be swayed by these last-ditch attempts to force through a harmful Bill with supposed concessions. 'The only way to avoid a catastrophe today and in the future is to stop the cuts altogether by halting the Bill in its tracks.' The Tories described concessions as 'the latest in a growing list of screeching U-turns' from the Government. Shadow chancellor Mel Stride said: 'Under pressure from his own MPs, Starmer has made another completely unfunded spending commitment. 'Labour's welfare chaos will cost hardworking taxpayers. 'We can't afford Labour.'
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Welfare bill: A humiliating blow for Starmer, and the fallout will be felt way beyond this week
First there was stonewalling, then the private complaints from MPs before a very public outburst that saw an eye-watering 127 MPs tell their prime minister they were going to defy him on a welfare vote. Now, the inevitable climbdown has arrived, with Downing Street to rebels last night on their planned cuts to disability benefits. A government with a massive 165-strong working majority, had an awakening on Thursday to the importance of parliament as it embarked on a humiliating climbdown after the private warnings of MPs to Downing Street fell on deaf ears. It's worth taking a beat to reflect on the enormity of this moment. Less than a year ago, was walking into No. 10 having won a landslide, with a Labour majority not seen since the Blair era. That he has been forced to retreat by angry foot soldiers so early in this premiership, despite having such a big majority, is simply unprecedented. No government has lost a vote at second reading - this basically the general principles of a bill - since 1986 (Thatcher's shops bill) and that was the only occasion a government with a working majority lost a bill at the second reading in the entire 20th century. It is obviously a humiliating blow to the authority of the prime minister from a parliamentary party that has felt ignored by Downing Street. And while No. 10 has finally moved - and quickly - to try to shut down the rebellion, the fallout is going to be felt long beyond this week. Before we get into the problems for Starmer, I would like to acknowledge the predicament he's in. Over the past 10 days, I have followed him to the G7 in Canada, where the Iran-Israel crisis, US-UK trade deal and Ukraine war were on the agenda, to Chequers at the weekend as he and all the risk it carried, and to the NATO summit this week in the Netherlands. He could be forgiven for being furious with his operation for failing to contain the crisis when all his attention was on grave international matters. He landed back in Westminster from the NATO summit on Wednesday night into a domestic battle that he really didn't need but moved quickly to contain, signing off a plan that had been worked up this week in Downing Street to try to see of this rebellion. What will the changes be? At the time of writing this, the government is yet to officially announce the climbdown, but I expect it to be significant. I understand the government is offering to keep personal independence payments, the benefits given to those who are disabled, unchanged for existing claimants, rowing back on an initial plan to take it away from hundreds of thousands of people by tightening the criteria for claiming. I also understand the government will drop the cuts to the health element of universal credit for existing claimants, in changes that will cost an estimated £1.5bn - nearly a third of the savings the government has previously earmarked from these changes. One senior parliamentary source told me on Thursday night they thought it was a "good package" with "generous concessions", but said it was up to individual MPs to decide whether to withdraw their names from the amendment that would have torpedoed the welfare bill. In the coming days, No. 10 will have to make the case to backbenchers and whittle down the rebellion in order to get the welfare bill passed on Tuesday. But it's clear that No. 10 has given MPs a ladder to climb down. But the bigger question is where does it leave the government and its party. There is quiet fury from many MPs I have spoken to, angry at the No. 10 operation and critical of what they see as a "boy's club". There has been criticism levelled at the PM's chief of staff Morgan McSweeney, with MPs in seats facing challenge from the left rather than the right frustrated that the whole No. 10 strategy seems to be seeing off Reform, rather than look to the broader Labour base and threats from the Lib Dems or the Greens. There is also much ire reserved for Rachel Reeves - interestingly Liz Kendall is escaping the criticism despite being the architect of the reforms - with MPs, already angry over winter fuel debacle, now in open revolt over the chancellor's decision to force through these cuts ahead of the Spring Statement in March in order to help fill her fiscal black hole. MPs felt talked down to One Labour figure told me on Thursday the growing drumbeat in the party is that Reeves must go. Another MP told me colleagues hated the cabinet ring around to try to persuade them to back down over welfare, saying more MPs ended up adding their names to the list because they felt talked down to. Read more: All of this needs work if the PM has any hope of rebuilding trust between his party and his operation. There is also the problem of what flows from the concessions. The chancellor will have to fund these concessions, and that could mean hard choices elsewhere. Will this mean that the government ends up doing less on reforming the two-child cap, or will it have to find welfare cuts elsewhere? That flows into the third problem. In seeing off this rebellion No. 10 has contained MPs rather than converting them. What the parliamentary party has seen is a government that, when pressed, be it on winter fuel or benefit cuts, will fold. That will only serve to embolden MPs to fight again. In the immediate term, the government will hope it has seen off a potentially catastrophic defeat. But seeing off the growing malaise around the Starmer administration just got a bit harder after this.
