The Chancellor’s announcement on Council-Tax appears to be a big climbdown, recognising that the government’s previous council-tax policy had failed to protect people who require social care. However this increase in Council-Tax still will not come close to covering the increasing demand for social care services.
The Leader of the Labour Group, Councillor Jim Grant, has responded to the Chancellor’s announcement that the Government will allow local authorities to retain up to 100% of their fixed asset receipts (excluding Right to Buy receipts) on the revenue costs of “reform” projects and that local authorities will be allowed to increase Council Tax by 4% , so long as 2% of this money is ringfenced for Adult Social Care. He said:
“The Chancellor’s announcement on Council-Tax appears to be a big climbdown, recognising that the government’s previous council-tax policy had failed to protect people who require social care. However this increase in Council-Tax still will not come close to covering the increasing demand for social care services. What this announcement also does is undermine the need to create new parish councils as the Conservative administration had proposed in order to raise more council-tax through new parish precepts.
The Chancellor’s new asset sale policy is largely meaningless as the council already can use the receipts of asset sales to help with their budget. It is also a hypocritical policy given that the main asset sale receipts the government take from local government is from Right to Buy council house sales, which they will continue to take a portion of even after this policy comes in to effect.”