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

UTC Senior Engineer

Kirklees Metropolitan Council
£30,515 - £32,046
At Kirklees Council, we're looking for a talented Senior Engineer to help drive that transformation. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

UTMC Engineer

Kirklees Metropolitan Council
£26,016- £29,071
At Kirklees Council, we're looking for a talented Engineer to join our Urban Traffic Control team. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

UTC Technical Officer

Kirklees Metropolitan Council
£26,016 - £26,427
Working within a specialist team, you'll support maintenance, street works, asset enquiries and financial processes. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Domestic Abuse Specialist (Raneem's Law - Wakefield based x2) - Staying Put (Bradford)

Kirklees Metropolitan Council
£33,000 FTE per annum
We are excited to announce the launch of the Raneem's Law West Yorkshire Pilot Wakefield, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Estates Surveyor - Braintree District Council

Essex County Council
£48945.00 - £53082.00 per annum
Estates Surveyor - Braintree District CouncilBraintree District CouncilPermanent, Full Time£48,945 - £53,082 per annum, pro rataLocation
Recuriter: Essex County Council
Linkedin Banner