Autumn Budget: Council tax increase “passing the buck to communities” says leader of Rotherham Council

Jeremy Hunt announced his Autumn budget today ( November 17), which included a rise in the amount that can be raised under the levy by local authorities.

Mr Hunt’s announcement means local authorities cam increase council tax bills without the permission of residents, to fund social care and other stretched local services.

Previously, councils needed to hold a referendum to increase council tax by more than three percent – two percent for its budget and one per cent to pay for social care.

Rotherham Council is facing an estimated £18m shortfall in its budget for next year – and leader Councillor Chris Read previously said he does not want to raise council tax – but the authority may have no option.

Mr Hunt also announced a cap of seven percent increases in social rent – money that Coun Read says is needed to build more council properties.

Councillor Read told the local democracy reporting service: “Councils are clearly continuing to face big budget pressures and while at face value the Chancellor’s statement today appeared to avoid the absolute worst case scenario of further emergency cuts, it didn’t offer us much hope.

“Councils now seem set to face real terms budget cuts for the next five years.

“There is some welcome additional funding for social care but that will fall well short of what’s required, and simply allowing councils to increase council tax just passes the buck to our communities.

“An unfunded cap on social rents will put pressure on our ability to build the new council homes that our residents need, there’s no mention of the UK Shared Prosperity Fund seven months after the cash was supposed to be in our bank accounts, and a further delay in Levelling Up Fund bids – including our Wath and Dinnington bid – means we are no further forward on that score either.

“Mr Hunt has at least calmed the utter chaos of the government over the last few months, but the outlook is still very bleak indeed.”