Small rise ‘will mean higher council tax or cuts in service’

Householders face big increases in council tax or cuts in services after what council chiefs said was the worst settlement in a decade - reports The Times.

The Local Government Association (LGA) said that the 1% a year funding increase for the next three years would inevitably lead to council tax rises above this year’s 4.2%.

The association warned that efforts to hold down council tax rises would be at the expense of cuts in social services and elderly care.

“This is the worst settlement for local government in a decade,” said Sir Simon Milton, the LGA's chairman.

“Councils will continue to work hard for the people they serve but they face tough choices. The Chancellor’s announcement will mean above-inflation rises in bills for council taxpayers and businesses, and there remains a black hole in funding for the care of the elderly.”

The association claims that there will be 400,000 more older people over the next three years, many of whom will require social services at home or in residential care.

Yet councils have already had to restrict the eligibility criteria for social care at home.