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

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Residential Worker

Essex County Council
£27935.00 - £35344.00 per annum + includes allowance
Residential WorkerPermanent, Full Time£27,935 - £35,344 per annum (including allowance)Location
Recuriter: Essex County Council

Programme Manager

Local Government & Social Care Ombudsman
£64,582-£70,591 (Coventry & York), £69,204-£75,222 (London)
Every year, the Local Government and Social Care Ombudsman helps thousands of people who have been let down by public services Hybrid working – allocated to offices in Coventry, York or London
Recuriter: Local Government & Social Care Ombudsman

Streetwork Inspector

Royal Borough of Greenwich
£41,113 to £43,680 including London Weighting
Communities, Environment, and Central have a vacancy in its Network Management Division Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Product Manager

Royal Borough of Greenwich
PO5 - £52,194 to £55,323.
Royal Greenwich is a vibrant borough, with a rich history and diverse community. Doncaster, South Yorkshire
Recuriter: Royal Borough of Greenwich
Linkedin Banner