Friday, 27 November 2015

IFS: Council tax levy spending “impossible” to check

The Institute for Fiscal Studies warns that it would be "impossible" for the government to check if the money raised by councils hiking their council tax under new powers is being spent on social care, as intended by the Chancellor. It also warned that wealthier areas such as Richmond, Windsor and Cheshire East can raise enough money to cover up to 17.6% of their care budgets, while those that charge significantly less for council tax, including several London boroughs, Manchester, Newcastle and Liverpool will see the levy raise as little as 4.2% of their social care bill. "The changes to local government financing and devolution are genuinely radical and could transform both the role of local government and the UK's fiscal architecture," IFS director Paul Johnson added.

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