Council tax warning
Thursday, 06 Dec 2007 13:39
Local government chiefs have warned higher council tax bills are likely
Some parts of the country could face council tax hikes due to a lack of government cash, local authority chiefs have warned.
The warning from the Local Government Association (LGA) came ahead of today's government announcement of the latest three-year funding settlement for local councils.
In a parliamentary statement, local government minister John Healey said central government funding for local authorities would increase by four per cent in 2008/09 and the following year and by 4.3 per cent in 2010/11.
But prior to today's announcement, which outlined how much cash each local authority will receive, the LGA suggested central government funding was inadequate and claimed local councils would be forced to make "tough choices" over which services they provide due to increased pressure on provisions.
The rising cost of putting rubbish in landfill sites, the additional number of elderly people requiring social care, the introduction of free England-wide bus travel for the over 60s and some disabled people and growing immigration levels are all cited as developments which are likely to put pressure on local authority finances in the future.
"In some regions local councils will have to make tough choices between spending cuts and council tax rises above inflation," warned LGA chairman Sir Simon Milton.
"Many council leaders will be scratching their heads as they try to work out how they will deliver ever better services for local people with less money than in recent years and with greater demands on services," he added in a statement ahead of this afternoon's announcement.
However the local government minister said he was prepared to use capping powers to prevent local authorities introducing "excessive" council tax rises.
Rejecting the arguments put forward by local authority leaders, Mr Healey this morning told the Today programme the financial settlement for councils continued above inflation increases in local government funding.
"It gives them three years of certainty to manage it, greater flexibility, and there is no reason why people should see excessive council tax rises," he stressed.
Mr Healey later told the House of Commons he expected the average council tax increase in England to be substantially below five per cent a year.