Martin Ford 27 May 2021

Council tax collection deficit hits £500m

Council tax collection deficit hits £500m  image

Councils will need ‘additional help from taxpayers’ to balance their books, the Chartered Institute of Public Finance and Accountancy (CIPFA) has warned.

The warning followed the release of figures showing an estimated council tax collection deficit totalling £509m for English authorities in 2020-21.

According to the data from the Ministry of Housing, Communities and Local Government (MHCLG), Liverpool City Council is facing a deficit of £17.7m, Leeds City Council’s deficit stands at £15.9m and Brent LBC’s also exceeds £15m.

As part of measures to combat the financial impact of the pandemic, the Government introduced a 75% tax income guarantee scheme and has granted dispensation to spread repayment over three years.

CIPFA chief executive officer Rob Whiteman said: ‘Ultimately, this financial hole isn’t as deep as it looks, but, with the Government ending COVID support at the end of June, it’s hard to see how councils will be able to afford to repay the remaining deficit without additional help from taxpayers in the future.’

MHCLG permanent secretary Jeremy Pocklington said last month there were ‘no plans’ to extend financial support for councils, but the situation was ‘under continuous review’.

Despite the overall deficit in England, 41 councils have reported a council tax collection surplus for 2020-21, standing at £4.2m for South Oxfordshire DC and £4.1m for Greenwich LBC.

SIGN UP
For your free daily news bulletin
Highways jobs

Team Leader - Benefits

London Borough of Richmond upon Thames and London Borough of Wandsworth
£33,543 to £40,647 per annum
We are looking for a highly motivated and enthusiastic individual to join our Pensions Shared Service as a Team Leader in our Benefits Team.  Wandsworth, London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

School Based Social Worker

London Borough of Richmond upon Thames and London Borough of Wandsworth
£36,219 - £43,887 per annum
Would you like to use your skills in a school setting to make a real difference to the lives of children and young people in Wandsworth? Wandsworth, London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Occupational Therapist

London Borough of Richmond upon Thames and London Borough of Wandsworth
£31,869 - £40,647
We are looking for registered and experienced Occupational Therapists to join our OT Service working... Wandsworth, London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Clerk to School Governing Boards

London Borough of Richmond upon Thames and London Borough of Wandsworth
£31,869 per annum
Would you like the opportunity to help shape and influence the governing boards on constitutional matters, duties, and powers? Wandsworth, London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Independent Travel Trainer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£29,250 per annum
Are you passionate about helping young people transition to independence, specifically through SEN Transport? Wandsworth, London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue