Extra £2bn raised from council taxes will not solve funding crisis says Care England

spending review

Care England has said that even if tomorrow’s Autumn Statement enables local authorities to raise an extra £2 billion from higher council taxes, it will not be enough to plug a funding gap.

A report this week hinted that the chancellor George Osborne may allow councils to increase local taxes by more than 2% to pay for care services in crisis.

Currently, councils have to put their plans to a local referendum if they want to increase council tax by more than 2% per year.

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If every eligible council used the opportunity, it has been estimated that an additional £2 billion would be raised by 2020 for the care sector.

Care England tweeted today that the proposal would not raise enough money, and that the terms that have been suggested in newspaper reports fall short of concrete pledges.

“The proposed council tax rises will not plug social care holes. £2bn is insufficient and plan has no real assurances,” Care England said.

“Care providers are agreed, the figure needed from the government immediately is £6 billion,” it added.

The Care & Support Alliance also weighed in. Its chairperson Vicky McDermott, wrote in the Huffington Post: “It’s a policy laden with ‘ifs’. Even if councils were to raise council tax by 2% in every year of this parliament, and even if every  single one of them agreed to spend every penny raised on social care, it would only generate £2 billion for social care over the lifetime of this parliament.”

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