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

Peripatetic Support Worker

Wakefield Council
£15,560.81 to £15,821.04. pro rata. Grade 4.
Are you caring, compassionate, and friendly? De Lacy Gardens, Mill Hill Lane, Pontefract, WF8 4GY
Recuriter: Wakefield Council

Service Manager - Highways (Asset and Traffic)

SWISCo
£48,474 to £51,515
A vacancy has become available for a Service Manager to join and manage our successful Highways Assets and Traffic team. Torbay, Devon
Recuriter: SWISCo

Traffic Management Technician - WMF1090e

Westmorland and Furness Council
Salary £26,421 - £27.334
This is a role for Traffic Management Technician to be based in the Eden area. Penrith, Cumbria
Recuriter: Westmorland and Furness Council

Assistant Arboricultural Consultant

Essex County Council
£26100 - £30706 per annum + + 26 Days Leave & Defined Benefit Pension
Assistant Arboricultural ConsultantPermanent, Full TimeUp to £30,706 per annumLocation
Recuriter: Essex County Council

Initial Enquiry Worker (Fostering Recruitment & Assessment)

Essex County Council
£23344 - £26530 per annum + + 26 Days Leave & Defined Benefit Pension
Initial Enquiry Worker (Fostering Recruitment & Assessment)Permanent, Full TimeUp to £26,530 per annumLocation
Recuriter: Essex County Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.