The government is expected to today announce a rise in the social care precept to between 3 and 4% from the current 2%.
As part of the local government funding settlement, Communities Secretary Sajid Javid will announce the precept can be raised to 3% over the next two years or by 4% in 2017, the BBC reports.
Bringing forward the money means there will be no precept in the third year as the increase over the next three years is limited to 6%.
The plans have already been criticised by The King’s Fund, however, which argues that the precept will provide most for affluent areas and less for deprived parts of the country (see Council tax hikes considered for social care).
The criticism was echoed by Labour leader Jeremy Corbyn who said the social care crisis had been “made in Downing Street”.
Mr Corbyn said the government should reverse cuts in corporation tax to pay for social care.
Prime Minister Theresa May said the government was establishing a “long term, sustainable system”.
Figures released by the GMB show that an 8% increase in London council tax would raise £64 per head in the City of London compared with just £16.50 in Newham (see below).
|Council tax base + 8% (£)||Council tax per head current base (£)||Council tax per head 8% increase (£)||Yield per head from 8% increase (£)|
|1||City of London||7,605,360||803.9||868.2||64.3|
|2||Kensington and Chelsea||102,495,240||601.8||649.9||48.1|
|4||Richmond upon Thames||93,693,348||445.5||481.1||35.6|
|5||Hammersmith and Fulham||79,964,172||412.7||445.7||33.0|
|12||Kingston upon Thames||65,173,680||347.8||375.6||27.8|
|32||Barking and Dagenham||49,404,168||226.5||244.6||18.1|