Chancellor Jeremy Hunt recently shared that local councils across England have the option to increase council tax by up to 5% from April 2023.
This increase is hoped to provide adult social care with a much needed cash injection - however, there is growing concern that this will put a lot of already struggling households under further financial pressure.
Local government leaders have warned that higher council tax bills will not prevent cuts to vulnerable public services, such as libraries, waste removal and social care, while causing extreme difficulties for residents given the cost of living crisis.
Having said this, it is predicted that 95% of councils will opt for the full rise.
How will higher council tax bills support the adult social care sector?
This government-led initiative is but a short-term solution for the adult social care sector, which has had staff shortages and financial uncertainty threaten its survival for quite some time now.
The rise would provide budgets of up to £7.5bn for adult social care over coming two years, but would also mean council tax bills rocketing - with some band D households expected to see bills of more than £2,000 for the first time.
Responding to the government announcement, the Local Government Association said: “Council Tax has never been the solution to meeting the long-term pressures facing essential public services. This is particularly the case for high-demand national services like adult social care, child protection and homelessness prevention.
“It also raises different amounts of money in different parts of the country unrelated to need and adds to the financial burden facing households.”
While Imperium Solutions is happy the government is taking time to address ongoing issues in the adult social care sector, we agree that there is still work to be done - and council tax clearly isn’t a long-term solution.
To speak to a member of our team please contact us on 0208 929 4000.
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