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

Teacher of the Deaf (North East Essex)

Essex County Council
£34000.0000 - £54000.0000 per annum
Teacher of the Deaf (North East Essex)Permanent, Full TimeTeachers Pay and ConditionsLocation
Recuriter: Essex County Council

IT Support Officer - Rochford District Council

Essex County Council
Up to £15.9900 per hour
IT Support Officer - Rochford District Council Rochford, Essex Full-Time, Temporary - 37 hours per week 3-Month Contract £15.99 PAYE / £20.51 Umbrella England, Essex, Rochford
Recuriter: Essex County Council

Experienced Social Worker

Cheshire East Council
£43,149 - £49,658 per annum
Join a council that puts relationships at the heart of practice. Macclesfield/ Crewe
Recuriter: Cheshire East Council

Personal Advisor

Cheshire East Council
£32,578 - £35,570 per annum
Help shape brighter futures for care leavers Crewe, Cheshire
Recuriter: Cheshire East Council

Social Worker (Progressed)

Cheshire East Council
£40,444 - £43,149 per annum
Join our ambitious Children's Services team and help shape brighter futures for children and young people. Macclesfield, Cheshire
Recuriter: Cheshire East Council
Linkedin Banner