Responding to research by CIPFA into council tax increases this year, Cllr Richard Watts, Chair of the Local Government Association’s Resources Board, said:
“Faced with ongoing funding pressures such as homelessness and looking after vulnerable children, councils continue to be left with little choice but to ask residents to pay more to help them try and protect their local services.
“This will help offset some of the financial pressures they face this year, but more than a third of the extra council tax income for adult social care services will be needed to meet the cost of paying for the Government’s unforeseen increase in the National Living Wage this year.
“Councils in England face an overall funding gap of almost £6.5 billion by 2025 just to cover basic inflationary and demographic pressures. Council tax income cannot be expected to plug the growing funding gaps they face.
“The Budget and the Spending Review need to provide a sustainable, long-term funding settlement for councils which means they can improve services and not just keep them going.”
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