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

Housing Officer

The Royal Borough of Kensington & Chelsea Council
Up to £40404 per annum
Be the first point of support for our residents, making sure homes are safe, communities are strong and services are delivered with care.Working as a England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Youth Engagement & Partnerships Officer

The Royal Borough of Kensington & Chelsea Council
Up to £40404 per annum
Empower young voices, shape local democracy, and build lasting community partnerships.We're all in for young people across our borough, working alongs England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Senior Finance Business Partner

South Yorkshire Pensions Authority
£56,818 - £63,802
This is an exciting opportunity to join our small, friendly, and forward-looking Resources team in this well-respected, award-winning organisation. Barnsley / Hybrid Contract
Recuriter: South Yorkshire Pensions Authority

Technical Officer

Sheffield City Council
Grade 9 £47,181 to £51,356
Are you an experienced highways professional with a passion for highway asset management, maintenance delivery, and technical leadership? Sheffield, South Yorkshire
Recuriter: Sheffield City Council

Team Leader (Section 278 / 38 Road Safety)

Cardiff Council
Grade 10 - £48,226 - £51,356
Cardiff is one of the UK’s fastest‑growing and most vibrant cities. Cardiff (Caerdydd)
Recuriter: Cardiff Council
Linkedin Banner