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

Enhanced Social Work Practitioner

Durham County Council
Grade 12 - £44,075 - £48,226 per annum. Pay award pending.
Do you believe every child deserves to grow up surrounded by love, family, and a sense of belonging?   Are you an experienced social worker ready to p Durham
Recuriter: Durham County Council

Principal Accountancy Assistant

Durham County Council
£38,220 to £41,771 p.a. (Grade 10) Pay award pending
We are currently recruiting for two Principal Accountancy Assistant positions, one of the posts is within the Financial Technical Accounting Team, sup Durham
Recuriter: Durham County Council

Lecturer in Health, Care and Education

Durham County Council
Grade 9, £35,412 - £39,152 pro rata per annum. Pay award pending.
We are looking for an enthusiastic and dedicated Lecturer with experience in Health & Social Care and Education who is passionate about helping adults Durham
Recuriter: Durham County Council

Care Support

Durham County Council
Grade 4 £25,583 - £26,824 pro rata pa. (Pay award pending).
We have an exciting opportunity to join our Pathways Service, which delivers high-quality day services for adults with complex needs, Monday to Friday Spennymoor
Recuriter: Durham County Council

School Driver

Durham County Council
£24,796 pro-rata
Fixed Term Contract until 31 August 2027 Part-time - 7.5 hours per week- 7.15am – 8.45am Monday to Friday. Term Time Only Required to start 1st Septem Durham
Recuriter: Durham County Council
Linkedin Banner