Council tax rises in 2017/18 will not bring in enough money to prevent the need for further deep cuts to local services next year, the Local Government Association has today warned.
Analysis from the LGA has shown that despite 147 of 151 of England’s social care authorities planning or considering using the social care precept in 2017/18 the extra funds raised will still not be sufficient to pay for services.
The extra £543million set to be raised by the 1.99% council tax hike will be swallowed up by the costs of paying for the Government's National Living Wage, which the LGA has estimated will total £600million next year.
The LGA have warned that these tax rises will not prevent the need for continued cutbacks to local services, including social care.
The association has said councils will have to divert more money from other local services, including filling potholes, maintaining parks and green spaces and running children's centres, leisure centres and libraries, to try and plug growing social care funding gaps.
With local government facing an overall funding gap of £5.8 billion by 2020 the LGA is calling on government to use the final Local Government Finance Settlement this month to provide new money for social care.
Lord Porter, LGA Chairman, has said: "Services supporting the most vulnerable people in our communities are at breaking point and many councils are increasingly unable to turn down the chance to raise desperately-needed money for social care and other local services next year.
"Social care faces a funding gap of at least £2.6 billion by 2020. It cannot be left to council taxpayers alone to try and fix this crisis.
"Without genuinely new additional government funding for social care, vulnerable people face an ever uncertain future where they might no longer receive the dignified care and support they deserve. This is not only worse for our loved ones but will also heap further pressure and wasted expense on the NHS.”
The LGA have also raised concerns about cuts to the New Homes Bonus which will create another shortfall, leaving two thirds of councils to find millions of pounds more in savings than they were expecting in 2018.
The association is urging government to reverse these cuts.
