Town hall to hike up council tax to the max

COUNCIL tax in Stockport is set to rise by five per cent in each of the next two years as the town hall tries to plug a £120m gap in adult social care and health.

Greater Manchester leaders say the crisis is putting some of the region’s most vulnerable at risk, accusing the government of a lack of funding and passing the problem to local authorities.

It is thought every council in the region will raise council tax by 5pc – the maximum possible – this year. And most, if not all, could do the same again the next year.

In December, ministers gave town halls permission to add an extra 1pc to council tax for the next two years to prop up the buckling social care system.

That was on top of the 2pc extra allowed under former Chancellor George Osborne.

Manchester, Trafford and Salford bosses have already announced 5pc rises, with 3pc ring fenced for social care.

Stockport leader Alex Ganotis is the latest to announce a maximum rise, with the town facing a £120m gap in funding for health and social care services by 2020.

He, like other Greater Manchester leaders, insisted he had no choice but to hike the bill in the face of the growing crisis.

The region is facing a £1bn-plus gap in health and social care by the end of the decade.

Coun Ganotis said social care was the most important issue in Stockport considering the scale of cuts and following the council’s move to pool budgets with health chiefs in a £200m move.

The plan is aimed at avoiding duplication and saving cash.

The town hall put around £85m into the pot last year, but further brutal cuts in the next few years will slash this fund.

The council still needs to save find around £5m pooled budget savings for 2017/18.

A government move to reduce council funds from a house building bonus in return for a share of a new adult social care grant will net Stockport around £500,000.

The extra 1pc on council tax will bring in roughly £1.3m, meaning bosses still have around £3m in savings to find.

Coun Ganotis said that could come from spare cash last year, when there was a £3.9m underspend.

New ways of delivering services are being rolled out as part of the pooled budget plan with health chiefs.