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

Assistant Finance and Business Development Manager

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 - £49,365 per annum
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Senior Occupational Health Advisor

Durham County Council
£44,075 to £48,226 p.a. (Grade 12) pay award pending
Due to increased service demand we have an exciting opportunity for an additional Senior Occupational Health Nurse to join our well-established in-hou Durham
Recuriter: Durham County Council

Social Worker

Durham County Council
£35,412 - £39,152 / £40,777- £45,091 pro rata i.e. grade 9 pre progression/grade 11 post progression
We seek a full-time, permanent Social Worker who is calm under pressure and passionate about improving the lives of service users. WHAT IS INVOLVED? Durham
Recuriter: Durham County Council

Young Person's Advisor

Durham County Council
Grade 8 - £32,597 - £36,363
X1 Young Person’s Advisor – Full-Time (Temporary for 12 months) An exciting opportunity has become available within the Unaccompanied Asylum-Seeking Spennymoor
Recuriter: Durham County Council

Sufficiency Support Officer

Durham County Council
£28,142 - £31,022
Do you want your work to make a real difference to the lives of children and young people in our care?   This is a brilliant opportunity to join a new Spennymoor
Recuriter: Durham County Council
Linkedin Banner