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Ministers are looking at increasing council tax to pay for social care but have been warned that it will not tackle funding problems which are “out of control”.
Experts, including the former Tory health secretary Stephen Dorrell, have warned of a growing cash crisis hitting local government and the NHS.
The government is preparing to allow tax precepts to be increased so local councils, which have suffered reductions in government grants totalling more than 40% since 2010, can claw in extra cash to cover the spiralling social care costs.
Izzi Seccombe, the Conservative chair of the Local Goverment Association’s community wellbeing board, confirmed that the idea of an increase in the precept was being considered.
“We have had some dialogue with ministers about this,” she told BBC Radio 4’s Today programme on Monday.
But she said the money raised from such a move would not be enough. Seccombe pointed out a 2% increase in precept imposed by most councils last year raised only £380m, which was not enough to pay the £600m needed to cover increased staff costs under the “national living wage”.
She also warned that a rise in council tax would create a postcode lottery in services because richer areas could raise more than poorer areas where the need is greatest.
https://www.theguardian.com/money/2...e-being-considered-to-cover-social-care-costs
Illustrates very clearly the government's (intentional?) failure to understand and try to solve the situation. They raise the minimum wage - which is good - but make no allowance for the fact that this also raises costs for local authorities, and that need is greater in areas least likely to be able to raise the necessary funds
I cannot believe this is something they are fully aware of, but deliberately shifting blame for problems onto the LAs Where they think it will all end, I have no idea
Experts, including the former Tory health secretary Stephen Dorrell, have warned of a growing cash crisis hitting local government and the NHS.
The government is preparing to allow tax precepts to be increased so local councils, which have suffered reductions in government grants totalling more than 40% since 2010, can claw in extra cash to cover the spiralling social care costs.
Izzi Seccombe, the Conservative chair of the Local Goverment Association’s community wellbeing board, confirmed that the idea of an increase in the precept was being considered.
“We have had some dialogue with ministers about this,” she told BBC Radio 4’s Today programme on Monday.
But she said the money raised from such a move would not be enough. Seccombe pointed out a 2% increase in precept imposed by most councils last year raised only £380m, which was not enough to pay the £600m needed to cover increased staff costs under the “national living wage”.
She also warned that a rise in council tax would create a postcode lottery in services because richer areas could raise more than poorer areas where the need is greatest.
https://www.theguardian.com/money/2...e-being-considered-to-cover-social-care-costs
Illustrates very clearly the government's (intentional?) failure to understand and try to solve the situation. They raise the minimum wage - which is good - but make no allowance for the fact that this also raises costs for local authorities, and that need is greater in areas least likely to be able to raise the necessary funds
I cannot believe this is something they are fully aware of, but deliberately shifting blame for problems onto the LAs Where they think it will all end, I have no idea 