Town halls are considering whether to raise council tax as they prepare their budgets for the next financial year
Councils across the country will be facing difficult decisions over the next couple of months as they set their budgets. It comes at a time of financial uncertainty over future funding for councils as public sector cuts loom.
On top of this, metro mayors like Andy Burnham can add to the bill by raising rates for the police, the fire service and other schemes such as transport. However, in poorer parts of the country - predominantly in the North of England - raising council tax does not generate as much money as elsewhere.
Furthermore, local authorities claim that if they do not raise council tax by the full amount available, the government would assume they have more money than they actually do and this could affect the funding it receives in the future. The government has said this assumption is 'incorrect', but admits that future funding decisions are based, in part, on the level at which council tax is set at.
An announcement about the other council tax precepts set by the Labour mayor is expected to be made later this month. Here is what each of the 10 local authorities in Greater Manchester have said about council tax so far.In December, Bolton council's cabinet agreed to consult on budget plans that would see a £4.3m reduction in its budget. The council said savings would be found across various departments, but essential services would be protected.
It comes after councils were told how much money they could expect to receive from the government next year in the week before Christmas. The provisional financial settlement puts Manchester council in a better position than it expected, closing the £6.7m budget gap it had previously projected.Oldham council is still finalising its spending plans but has said that over the next two financial years, it will need to find £42.55m worth of savings.
Speaking after the autumn statement, a Salford Labour source said that it would be 'very difficult' for councils not to accept the full increase. They predicted these increases in council tax would be seen across the country.Stockport council's aim to freeze council tax was thrown into doubt following the autumn statement. Now, a new report published this week confirms that the local authority will consider an increase to balance the budget next year.
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