Labour will force a vote in the House of Commons demanding
that the Government reverse its plans to force councils to raise
council tax by 5 per cent, a rise which would see council tax
bills rise by £93 on average.
The move follows an appeal from Labour leader to stop the council tax rise and provide certainty to
millions of families who face additional blows to their incomes
from frozen pay and a cut to Universal Credit.
Under the Government’s proposals set out in the
Comprehensive Spending Review, familiesliving in Band D will face
an average rise of £93 next year. It means council tax will have
risen by 33 per cent under the Conservatives.
Councils face a severe funding gap because of income lost
during the pandemic and the additional costs of keeping
communities safe from covid-19.
Communities Secretary previously said councils would be funded to do
“whatever it takes” to support their communities but later
backtracked and suggested councils should share the burden of
their lost income.
, Labour’s Shadow Communities and Local Government
Secretary, said:
“The Conservatives’ council tax rise will hit families
right at the very time millions are worried about the future of
their jobs and how they will get through the next few
months.
“With Britain having experienced the worst recession of any
major economy this is simply the wrong time for this tax rise.
This Government should not be making families pay the price for
their mishandling of the Covid crisis and their broken promises
to support councils.
“The Prime Minister must cancel this hike. If he refuses,
Conservative MPs will have the opportunity to vote with Labour to
protect family incomes and secure our economy.”
Ends
Notes to Editors
· The Government’s Proposed Increase in
Council Tax
That this House calls on the Prime Minister to drop the
Government’s plans to force local councils to increase council
tax in the middle of a pandemic by providing councils with
funding to meet the Government’s promise to do whatever is
necessary to support councils in the fight against
Covid-19.
· has called on the Government to scrap an inflation
busting rise in council tax in April which will hit household
budgets.https://www.telegraph.co.uk/politics/2021/01/09/sir-keir-starmer-turn-labour-party-family-move-onto-tory-territory/
· The Centre for Progressive Policy has
estimated that the average rise for Band D households in England
will be £93. https://www.progressive-policy.net/publications/council-tax-increases-muddle-plans-to-level-up#_ftn3
· According to the Comprehensive Spending
Review Local authorities will be able to increase their council
tax bills by 2 per cent without needing to hold a referendum, and
social care authorities will be able to charge an additional 3
per cent precept to help fund pressures in social care (making a
total of 5% overall). https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/938052/SR20_Web_Accessible.pdf
· More than 85 per cent of the potential core
funding increase next year is dependent on councils increasing
council tax by up to 5 per cent next year, as set out in the
Comprehensive Spending Review. https://www.local.gov.uk/lga-responds-provisional-202122-local-government-finance-settlement
· The Conservative Government has cut £15
billion in central government funding for local government over
the last decade. According to the Local Government Association,
councils in England will face a funding gap of more than £5
billion by 2024 just to maintain services at current levels. The
LGA estimates that the Government will need to provide an
additional £10.1 billion per year in core funding to councils in
England by 2023/24 in order to plug the existing funding gap and
to meet growing demand pressures. https://www.local.gov.uk/ps10-billion-spending-review-investment-needed-protect-and-improve-local-services
· On 16 March, told over 300 council leaders that the
government stood ready to do whatever is necessary to
support councils in their response to
coronavirus. https://www.gov.uk/government/news/robert-jenrick-reaffirms-support-for-councils-in-their-coronavirus-response
· On 4 May, Jenrick told the Housing,
Communities and Local Government Committee that councils would
not be fully reimbursed for their costs during the pandemic and
that the shouldn’t “labour under a false impression that what
they are doing will be guaranteed funded by central
government.” https://www.lgcplus.com/politics/coronavirus/jenrick-warns-not-all-costs-will-be-covered-as-lost-income-estimates-branded-highly-speculative-05-05-2020/
