Council services face a tight squeeze despite an overall CIPFA council tax hike forecast of 4.2%. Social services, which are already struggling, due to NHS cost shunting and a lack of central government funding ‘keeping pace' with an ageing population, are in the firing line, together with leisure services. The CIPFA survey revealed the 4.2% increase was higher than recent predictions and compared with a current inflation rate of 2.7%. Despite what some will see as a significant rise, the Local Government Association welcomed ‘the lowest tax rise' in real terms in recent years, and praised councils that were doing their best to deliver ‘ever better deals' for taxpayers. But chair of the LGA, Lord Bruce-Lockhart, added it was time for the Government to be honest about funding implications for the future and the impact this was likely to have on council taxpayers and local services. ‘Government grant has failed to keep pace with the demands placed on local government, including coping with the needs of an ageing population and the costs from new legislation,' Lord Lockhart said. ‘Almost seven out of 10 authorities can now only afford to provide care to people with the most substantial and critical needs.' Local government minister, Phil Woolas, reportedly welcomed the proposed council tax figures, before reiterating comments he made to The MJ earlier this year. He said he knew councils needed more money for social care, but added the Government ‘could not just keep handing it out', calling for better use of resources between councils and health care officials. He said a ‘substantial' total formula grant investment had been made to avoid ‘excessive' increases (The MJ, 25 January 2007). Shadow local government secretary, Caroline Spelman, described the council tax bills as ‘inflation busting', and said the impact of rises would be felt ‘most sharply' by those on fixed incomes. ‘Council tax has now almost doubled under Labour and these latest estimates suggest Gordon Brown is going to squeeze incomes even more in the coming year, affecting some of the most vulnerable in society,' she said.
