Surrey to hold referendum on 15% council tax hike to fund social care
Surrey is to hold a referendum on increasing council tax by a massive 15% to pay for the growing crisis in social care.
It is expected that the decision could trigger other cash-strapped councils to follow suit in order to meet the growing cost of caring for people in their own homes after Theresa May refused to increase social care funding.
A 15% increase by the Tory-controlled authority would add around £200 to the average bill and it is the first council to hold a vote on such a rise.
It is particularly embarrassing for the Government because Surrey contains the constituency of the Health Secretary Jeremy Hunt, who is under fire because of the current NHS crisis gripping the country.
As well as Mr Hunt, the county covers the constituencies of 11 Tory MPs including Chancellor Philip Hammond, former Justice Secretary Michael Gove, chair of the Foreign Affairs select committee Crispin Blunt and Transport Secretary Chris Grayling.
Mr Blunt said he supported the council's decision. He said: "Until national funding is reviewed, councils are going to face unpalatable choices."
Mr Hammond had been tipped to include a boost for social care funding in his Autumn Statement but Number 10 has been accused of blocking it.
The lack of funding sparked an outcry and in December Communities Secretary Sajid Javid said he would change the rules to allow local authorities to increase council tax by 5%, with 3% ring-fenced for adult social care.
The lack of social care services, particularly for the elderly, has been blamed for the current crisis in the NHS and Mrs May has been under increasing pressure to act.
Labour leader Jeremy Corbyn said: "It's not right that we should thrust the social care crisis on local authorities, all of whom have different levels of income all over the country.
"It's a central government responsibility and the central government should face up to its responsibilities."
Surrey Council is already facing a budget shortfall of £45m and cannot afford to increase social care funding.
Council leader David Hodge said: "We have to set a budget that will protect vital services for Surrey residents.
"Government has cut our annual grant by £170m since 2010 - leaving a huge gap in our budget."
But a Department for Communities and Local Government spokesman said: "If the council sets this proposed budget, then the taxpayers of Surrey will have the final say in a referendum in May. We should trust the people.
"Our long-term funding settlement means more spending power for Surrey County Council during this parliament, with £3.2bn to deliver the services that local people want."
The council has to put the increase to a county-wide vote because rules stipulate a local authority can only increase council tax by just under 5% unless the public agrees.
The move will be widely viewed as a political manoeuvring because it is unlikely families will vote to see a £200 increase to the household bills.
One Surrey Tory MP told Sky News that the county's MPs had been trying to broker a deal between Mr Javid and Mr Hodge but talks had failed.
The MP said: "They'll hold a referendum, lose, and then use it for cover to cut services."
Claire Kober, chairwoman of the Local Government Association's resources board, said: "Services supporting the elderly and disabled are at breaking point.
"It cannot be left to council taxpayers alone to try and fix them.
"Only genuinely new additional government funding for social care will give councils any chance of protecting the services caring for our elderly and disabled."
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