Council taxes to rise as cuts put pressure on services, says survey
ALMOST ALL local authorities in England are planning to raise council tax in the coming year while vital services ranging from social care to libraries remain under financial pressure, a survey has found.
Warnings have been made that town hall bosses will take “drastic measures” to balance their books after eight in 10 councils said they believe the current funding system is “unsustainable”.
And with further budget cuts to come, experts say councils could be forced to rely on unpredictable receipts from shopping and leisure developments, leaving services at the mercy of the success of regeneration projects.
More than half, some 53 per cent, are planning to dip into their reserves, The Local Government Information Unit (LGiU) and the Municipal Journal found.
More than a quarter said they were planning to cut spending on adult social care, with 24 per cent expecting reductions in children’s care services, 16 per cent in special education and disability support, and 11 per cent in support for the homeless.
The findings are based on the responses from 158 senior council figures, including leaders, chief executives and finance directors, representing 123 of the 353 English local authorities. Overall, the survey found 97 per cent of local authorities were planning to raise council tax in 2019-20, with threequarters set to increase it by more than 2.5 per cent.
All 14 Yorkshire authorities which responded to the survey were planning to raise council tax, most by up to 2.99 per cent, the highest increase possible without a referendum in most areas. Nationally, 97 per cent were set to increase fees and charges, with 13 per cent planning hikes of five per cent or more.
LGiU chief executive Jonathan Carr-West said “With more cuts ahead, local councils have no option but to take drastic measures to make ends meet. In the future, care for the elderly and vulnerable children could be funded from shopping centre investments and car parks, which carries significant risk if the economy tanks.
“Now more than ever we need a thriving, resilient local government sector to weather the storm of national uncertainty, but years of chronic under-funding have left local government on life support.”
Children’s services and education was said to the area under the greatest immediate financial pressure by 36 per cent of councils, with 23 per cent pointing to adult social services.
Many community services were 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 report said that the cuts reflected a £16bn drop in central government funding since 2011.
The Local Government Association (LGA) said the forthcoming Government spending review would be “make or break” for many vital local services.
Richard Watts, the chairman of the LGA’s resources board, said: “Many councils feel they have little choice but to ask residents to pay more council tax again this year to help them try and protect their local services.
“With councils facing a funding gap of more than £3bn this year, council tax rises will not prevent the need for continued cutbacks to local services.
“If we truly value our local services then we have to be prepared to pay for them. Fully funding councils is the only way they will be able to keep providing the services which matter to people’s lives.”
Years of underfunding have left councils on life support. Jonathan Carr-West, chief executive of the Local Government Information Unit