Council tax will not keep pace with rising social care costs, LGA cautions

The Local Government Association (LGA) has warned that planned increases to council tax will not generate enough money to cover the rising cost of social care.

The LGA conducted a survey which found that 90 per cent of councils expected to increase their tax bills by two per cent from April, under new powers announced by Chancellor George Osborne in the recent Spending Review. However, the union argued that any savings generated would be cancelled out by rising demand and the new National Living Wage.

The change is expected to cost taxpayers on average £24 per year for a Band D property, raising £372 million for local government. However, the LGA claims that increases to the National Living Wage will wipe out almost 90 per cent of the extra morning, leaving little for new investments.

Councillor Nick Forbes, LGA vice-chair, said: "The quality and quantity of services on offer could drop. Councils will continue to do all they can to maintain the services that older and vulnerable people rely on, but services supporting the elderly and disabled are at breaking point. It cannot be left to council taxpayers alone to try and fix them.

"Vital social care services will increasingly be unable to help ease the growing pressure on the NHS and the threat of a care home crisis is still very real."

A spokesman for the Department of Communities and Local Government said: "Supporting those most in need is an absolute priority and we have provided a £3.5 billion social care package - compared to the £2.9 billion councils said they needed.”