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Care precept could rise to 3%

  • 2 Comments

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.

  • 2 Comments

Readers' comments (2)

  • An extra 1% on the precept gets us absolutely nowhere. A pointless gesture.

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  • Adam I think it's the government's way of confirming that there is no extra funding and giving councils the option to raise a little more. This may be OK for some councils and it may be a temporary fix but for deprived areas and those councils that are already struggling it isn't going to help, not even in the short term.

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