COUNCIL TAX BILLS TO LEAP
Town halls plan 5% rises to pay for social care... AND we’ll pay more for parking, school meals and even burials
MILLIONS of households are facing an inflation-busting rise in council tax after almost all of England’s town halls vowed to increase bills.
A survey found that 94 per cent of local authorities plan to increase the tax by up to 5 per cent in April – the equivalent of an £80 rise for the average property.
The same proportion say they also want to put up parking charges and other fees, resulting in residents paying more for home help, swimming pools, school meals, burials, planning advice and garden waste collection.
This year’s study also found that five councils had been considering referendums to raise bills by more than the 5 per cent limit, but thought ‘better of it’ following the row over Surrey County Council’s move to hold a poll.
The majority of councils blame the social care crisis for the planned hike in bills.
But critics said town halls could avoid the ‘utterly ridiculous’ rise if they stopped hoarding cash and dipped into their huge reserves, which stood at £22.5 billion in 2015 – a rise of almost £1 billion on the previous year.
Others suggested they could save money by employing fewer chief executives on more than Theresa May’s £150,000 salary. In 2015, there were 537 of them.
The 94 per cent ratio of town halls wanting to increase council tax compares to just 50 per cent in 2015 and 35 per cent in 2014. In 2012, the same survey found that just 5 per cent were thinking of increasing the tax. The extent of
this year’s planned council tax rises were detailed in a report by the Local Government Information Unit (LGiU), an independent think-tank, and Municipal Journal magazine. They obtained responses from executives at more than 130 local authorities.
Councils have permission this year to raise bills by up to 5 per cent to tackle the crisis in social care, despite this being more than three times the rate of inflation. Rises had previously been restricted to 2 per cent.
A 5 per cent hike would increase the average Band D bill by £76 to £1,606. On a band H property, it would equate to a rise of £153.
Jonathan Carr-West, chief executive of the LGiU, said local government finances were in a ‘dire state’ and at ‘breaking point’.
But John O’Connell, chief executive of the Tax-Payers’ Alliance, said: ‘Residents who are themselves struggling to make ends meet are going to be alarmed by this, given that taxpayers across England have seen their council tax rise by nearly 60 per cent in real terms since 1996/97.
‘Councils must remember and respect the fact that families are facing financial constraints too, so they really must cut out every bit of non-essential spending such as increases in councillors’ allowances, for example, before asking residents to dig deeper into their pockets.’
More than half (52 per cent) of councils said adult social care was their greatest immediate pressure. In total, 80 per cent of respondents said it was likely they would put up some of their council tax specifically to pay for social care. This rises to 90 per cent in London and the South-East.
More than 40 per cent of councils said their budgets for the next financial year would result in cuts to frontline services, and almost 80 per cent said they had little or no confidence in the sustainability of local government finances.
Last night, Conservative backbenchers expressed anger that taxpayers are facing higher bills to pay for social care at a time when the Government is happy to spend billions on foreign aid.
Philip Davies said: ‘It is utterly ridiculous that we are increasing taxes for the people just about managing – the people the Government is supposed to be prioritising – when there is so much money wasted in overseas aid that could be spent to help elderly and disabled people in our own country.
‘I am afraid the Government are hugely out of touch with the public on this issue.’
Fellow Tory MP Peter Bone added: ‘ We found out this week that a lot of the money we are giving away in aid has been used fraudulently. It can’t be right that we have such needs here when so much money is ending up in the hands of fraudulent organisations, dictators and criminals.’
Julian Knight, a member of the communi- ties and local government select committee, said: ‘Councils need to realise that parking is essential for businesses and retailers... putting up parking charges in this way is going to be self-defeating.
‘Councils need to be honest with their residents about their finances. Just trying to use these back-door methods to squeeze cash out of users is not right.’
Mr Carr-West said: ‘Local government finances across the country are in a dire state. Council budgets are stretched beyond measure. Increased demand coupled with the management of nearly a decade of cuts has left local government at breaking point.’
Heather Jameson, editor of the Municipal Journal, said: ‘Councils have seen their budgets slashed for years. We are not just talking about accountancy problems, we are facing the collapse of vital services which protect vulnerable children and the elderly.’
Yesterday Mrs May admitted that councils were under pressure over social care.
‘We recognise the short-term pressures on social care, and we’ve looked at that in relation to funding,’ she said. ‘We need in the medium term to ensure that best practice is being spread across the country and we also need a long-term sustainable solution.
‘This has been ducked by governments for too long. This Government is looking at it.’