The government is set to allow councils to raise council tax by 6% over the next two years to boost funding for social care, LGC understands.
The local government settlement announced tomorrow is set to include a measure to allow councils to raise the social care precept, which is currently set at 2% above the referendum threshold of 1.99%, to 3% this year and next. However, they will no longer be able to apply a precept in the final year of the parliament.
The Local Government Association has said the social care funding gap will reach £2.6bn by the end of this parliament.
A 1% annual increase in the precept is expected to raise around £200m a year extra, on top of the £370m raised by the existing social care precept.
LGA Chair Gary Porter yesterday told LGC the social care funding gap could not be addressed by increasing the council tax precept alone as there were wide variations in the amount of money that councils could generate across the country.