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

Vocational Trainer - Early Years - South Essex

Essex County Council
£29468 - £34668 per annum
Vocational Trainer - Early Years - South EssexPermanent, Full Time£29,468 to £34,668 per annum (full time equivalent) Location
Recuriter: Essex County Council

Vocational Trainer - Business and Management - Mid Essex

Essex County Council
£29468 - £34668 per annum
Vocational Trainer - Business and Management - Mid EssexPermanent, Part Time£29,468 to £34,668 per annum (full time equivalent) Location
Recuriter: Essex County Council

Vocational Trainer - Health and Social Care - North Essex

Essex County Council
£29468 - £34668 per annum
Vocational Trainer - Health and Social Care - North EssexPermanent, Part Time£29,468 to £34,668 per annum (full time equivalent) Location
Recuriter: Essex County Council

Vocational Trainer - Health and Social Care - South Essex

Essex County Council
£29468 - £34668 per annum
Vocational Trainer - Health and Social Care - South EssexPermanent, Part Time£29,468 to £34,668 per annum (full time equivalent) Location
Recuriter: Essex County Council

Enterprise Architect

Essex County Council
£68635.0000 - £80746.0000 per annum
Enterprise ArchitectFixed Term, Full TimeUp to £80,746 per annumLocation
Recuriter: Essex County Council
Linkedin Banner