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

Garage Officer - Harlow Council

Essex County Council
Up to £16.8100 per hour
Garage Officer - Harlow Council Location, HarlowFull time, Temporary - 37.5 hours per week 6 Months Contract* £16.81 PAYE / £21.02 Umbrella Closing Da England, Essex
Recuriter: Essex County Council

Highways Adoption Engineer

Durham County Council
Grade 8 ( £32,597 - £36,363) Grade 9 (£35,412 - £39,152) Grade 10 (£38,220 - £41,771)
We are seeking to recruit a Highways Adoption Engineer (Career Graded). Your primary role will be to ensure that all new roads built within the County Durham
Recuriter: Durham County Council

Highways Assets Technical Officer

Durham County Council
£35,412 - £39,152
We are seeking to recruit a Highway Assets Technical Officer whose primary responsibility will be to ensure that Highways Asset Management is delivere Durham
Recuriter: Durham County Council

Contracts Administrator

Durham County Council
Grade 5 £26,403 - £28,598
A vacancy has arisen within Business Services for a full-time Contracts Assistant. This is initially temporary for 18 months. This is an exciting opp Durham
Recuriter: Durham County Council

Homelessness Prevention and Solutions Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 to £47,229 per annum
We are looking for a capable and ambitious individual keen to help families and individuals facing homelessness to help support them in their homelessness journey and adhere to legislative guidance as well as policy and procedures. Who are we looking fo Twickenham
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth
Linkedin Banner