More cuts to local services ahead despite tax rises, councils warn

Towns and cities across England are warning that further cuts will need to be made to local services, despite council tax bills rising by up to 5% this year.

The Local Government Association (LGA) says many councils are struggling to plug gaps in funding for social care - and will need to meet the shortfall by diverting cash earmarked for filling potholes, maintaining parks, and running leisure centres and libraries.

England's local authorities are allowed to increase council tax by up to 2% in 2017/18 - but LGA research suggests many town halls are considering or have approved an additional rise in council tax bills to pay for social care services.

Of the country's 151 social care authorities, 72% are looking into introducing an extra 3% social care council tax precept in the next tax year - meaning bills will rise by a total of 5%.

A further 25% are considering or have approved a social care precept of 2%, resulting in a 4% year-on-year rise in bills for their residents.

Only four councils in England say they plan to freeze bills in 2017/18.

Income raised through the precept has to be spent on social care - but the LGA is warning that the £543m it will raise is going to be swallowed up by the cost of paying for the Government's National Living Wage.

Lord Porter, chairman of the LGA, has warned social care is facing a funding gap of at least £2.6bn by 2020 - and council taxpayers cannot be expected to fix the crisis alone.

He 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.

"But extra council tax income will not bring in anywhere near enough money to alleviate the growing pressure on social care both now and in the future."

Lord Porter has called for "genuinely new additional government funding" for social care, as vulnerable people are facing an "ever uncertain future" where services they rely on may close - heaping further pressure and expense on the National Health Service.

"All councils are being pushed perilously close to the financial edge after years of funding reductions," the LGA chairman added.

A spokesman from the Department for Communities and Local Government said: "Whilst local authorities - like all public bodies - have had to find efficiency savings, our historic four-year funding settlement gives them the certainty they need to plan ahead with almost £200bn available to provide the services that local people want.

"By the end of this parliament, councils will be able to keep 100% of local taxes. We've also announced an additional £900m for social care, meaning councils will have £7.6bn of dedicated funding to spend over the next four years."