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Council leaders are wrestling with the prospect of asking residents to pay an extra 5% in council tax in 2021-22 after a year in which many have faced reduced income and unemployment as a result of Covid and with elections on the horizon for most upper tier councils outside London.
However, leaders told LGC they fear having to make further cuts to services if they do not apply the 2% increase to regular council tax and 3% adult social care precept that was announced at the spending review for upper tier councils.
Analysis from the Institute for Fiscal Studies found the government’s assumption that all councils will make the maximum council tax increase available to them accounted for three quarters of the 4.5% increase in local government spending power advertised by the chancellor. ....

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