Largest hike in council tax for 14 years
MILLIONS of households are about to be hit with the steepest council tax rise in 14 years – with local authorities still warning of more cutbacks.
Town halls will rake in an extra £2billion when next month they take advantage of new freedoms to increase council tax by up to 5.99 per cent.
People in band D properties in England will suffer an inflation-busting average rise of 5.1 per cent, increasing their tax bill by £81 to £1,671.
John O’Connell, chief executive of the TaxPayers’ Alliance, yesterday said: “Council tax has increased by 60 per cent over the last two decades and families simply can’t afford to pay any more.
“Local authorities should think twice before another round of painful tax hikes and instead step up their war on wasteful spending.”
But Lord Porter, chairman of the Local Government Association, said funding pressures meant increases would not stop cash-strapped councils from cutting services further.
He said: “Since 2010, council tax bills have risen by less than inflation and other key household bills. But faced with severe funding pressures, many councils feel they are being left with little choice but to ask residents to pay more to help them try to protect local services.
“The extra income this year will help offset some of the financial pressures.
“But the reality is that many councils are now beyond the point where council tax income can be expected to plug the growing funding gaps.
“Councils will have to continue to cut back services – or stop some altogether.”
Even though the imminent rises are the highest since 2004/5, Communities Secretary Sajid Javid insisted bills were lower in real terms under the Conservatives.
He said: “Council tax in England is 7.6 per cent lower in real terms than it was when we came to government.”
But shadow communities secretary Andrew Gwynne said: “This shows under the Tories, you pay more for less.
“Over the last eight years, council budgets have been reduced by half and services cut, with local people forced to pick up the slack as council tax bills soar.”
SOCIAL CARE COSTS BEHIND RISE
THE looming council tax rise is partly down to the rising costs of adult social care.
Services caring for elderly and disabled people face an annual funding gap of £2.3billion by 2020, according to the Local Government Association.
The Government’s £240million “adult social care support grant” to help councils that are particularly struggling will mean in total an extra £900million for authorities over the next two years.
But Dr Mark Holland, former president of the Society for Acute Medicine, said: “The Government has decimated social care funding and demonstrated its disregard for the situation and its impact on the NHS.” The crisis won’t be cured with half-measures, he added.