Tuesday, 6 January 2015

Funding gap leads to higher council tax bills

The Local Government Association will warn today that more than 2m families face higher council tax bills from April due to a funding shortfall. According to the LGA, low-income families will have to pay more in tax from April because the government has cut support funding to allow council tax discounts of up to 100% for poor households. A report from the association will show that in 244 council areas, all households have to pay at least some council tax regardless of their income – a rise of 15 from 2013-14. David Sparks, chairman of the LGA, said councils would need to find £1bn by 2016 to protect discounts for those on low incomes. “No one wants to ask those on the lowest incomes to pay more. But faced with significant cuts to the money we receive to look after the elderly, protect children, repair roads and collect the bins, many councils have had little choice but to reduce the discount,” he said.

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