Laura Sharman 05 February 2020

Cuts force most councils to increase council tax and charges

The majority of councils are planning on raising council tax and charging for services in 2020/21 in order to make ends meet, new research has revealed.

A new survey by the LGiU and our sister publication The MJ, shows that only 3% of councils are happy with the Government’s progress on local finances.

Three-quarters of councils lack confidence that the retention of business rates will be an effective way of funding local government, according to the 2020 State of Local Government Finance report.

It also shows 97% of councils are planning to increase council tax, with 97% planning to increase fees and charges. Nearly a quarter of councils (23%) said these financial plans will lead to cuts noticed by the public.

Three-quarters of councils also plan to increase their level of borrowing, with over half (57%) planning to use their reserves.

Heather Jameson, editor of The MJ, said: “The local government funding system is in desperate need of an overhaul. Despite a decade of austerity, local government is doing a valiant job of holding their services together, but they can’t go on forever without proper funding.

‘While the Government is reviewing the current funding system, the reforms are unlikely to go far enough to pay for the vital services that care for our elderly, protect our children, and help our communities thrive.’

Jonathan Carr-West, chief executive of LGiU, added: ‘This isn’t local government asking for more money. This is about a fundamentally flawed system that has been broken for years and the Government continually refusing to acknowledge or engage in a proper solution. Sticking plasters will not solve these critical issues.

Writing for The MJ, Heather Jameson says the finance system is increasingly unsustainable.

SIGN UP
For your free daily news bulletin
Highways jobs

Rehabilitation Officer Vision Impairment

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 - £52,767
Rehabilitation Officer Vision Impairmen... Twickenham, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Residential Worker

Wakefield Council
£32,061.00 to £34,434.00, Grade 7.
We are looking for a Full-Time Children's Residential Worker to join our team at Clarence Children's Home in Wakefield Wakefield, West Yorkshire
Recuriter: Wakefield Council

Community Development Officer

The Royal Borough of Windsor & Maidenhead
£32,962 - £36,791 per annum
We have an exciting opportunity for a Community Development Officer to join us! Maidenhead, Berkshire / Multiple
Recuriter: The Royal Borough of Windsor & Maidenhead

Telecare Responder

Durham County Council
Grade 6 £28,142 to £31,022 per annum
Could you respond to emergency calls, gain access and administer first aid if necessary? Could you assist in the provision of an equitable Countywide Durham
Recuriter: Durham County Council

Social Worker - Assessment & Intervention, Mid Team

Essex County Council
£34902.0000 - £50081.0000 per annum
Social Worker - Assessment & Intervention, Mid TeamPermanent, Full Time£34,902 to £50,081 per annum Location
Recuriter: Essex County Council
Linkedin Banner