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

Educational Psychologist

Durham County Council
£47,688 - £57,954 Soulbury A 3-8 plus SPA points pro rata to hours worked
There are new full and part time posts available as a result of new investment in our Educational Psychology team. This is a fantastic role where you Spennymoor
Recuriter: Durham County Council

Team Leader

Durham County Council
Grade 8 £32,597 - £36,363
Exciting Leadership Opportunity Within Keeping Families Together – Team Leader at The Beacon Children’s Home (Seaham)  Are you ready to lead with hea Durham
Recuriter: Durham County Council

Panel Administrator

Durham County Council
Grade 5 £26,403 - £28,598
An exciting new opportunity to join the panel team working full time, 37 hours per week. Your primary base will be Council Offices, Spennymoor. The r Spennymoor
Recuriter: Durham County Council

Senior Social Worker - Adults Emergency Duty/Approved Mental Health Professional

London Borough of Richmond upon Thames and London Borough of Wandsworth
£46,206 - £55,992
Senior Social Worker / Approved Mental ... Twickenham, Greater London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Care & Support Worker

West Northamptonshire Council
£13.52ph
36 hours per week (12 hours day shifts). Operating on a 4 week rolling rota. The current rota for this position does not include any weekend working. The team will provide quality care for our people, specialising in rehabilitation/reablement and sub-acu Northampton
Recuriter: West Northamptonshire Council
Linkedin Banner