Services cut while tax is to rise, say councils

NEARLY all local authorities in England are planning to raise council tax this year while many are also preparing to cut public services from social care to libraries, according to a survey.

Ninety-seven per cent plan to raise their council tax in 2019-20, with three quarters expecting to increase it by more than 2.5 per cent.

Any council that raises the tax by 3 per cent or more has to put it to a local referendum.

Some councils also admitted they could no longer protect core services, with 29 per cent planning to cut adult social care and 24 per cent expecting to reduce children’s care services.

The survey, by the Local Government Information Unit (LGIU) and The Municipal Journal, found eight in 10 councils believed the current funding system was “unsustainable”, with more than half (53 per cent) planning to dip into their reserves.

Jonathan Carr-west, the LGIU chief executive, said councils had no option but to adopt “drastic measures” if they are to make ends meet. He said: “We know that council funding is broken. Councils are making do by increasing council tax as much as they can, increasing charging and dipping into their reserves.

“Even with these desperate measures they are having to reduce spending; not just on vital place-shaping services like leisure, libraries and parks but in core life-saving areas like social care and children’s services.”

Last year, Northamptonshire county council declared bankruptcy and a number of others warned they were close to collapse as local government of all political colours struggled with a reduction in funds from Westminster.

Children’s services and education was said to be the area under the greatest immediate financial pressure by 36 per cent of councils surveyed.

Many community services were also said to be facing cuts, with 45 per cent of councils planning reductions to parks and leisure, 38 per cent to roads, 32 per cent to libraries and 22 per cent to waste collection.

The findings are based on the responses from 158 senior council figures, representing 123 of the 353 English local authorities.