Massive council tax hikes on the cards as Theresa May lifts ban on rises in bid to fill social care funding black hole
Move comes as local authorities warned of crisis that could leave them unable to look after Britain's ageing population
THERESA May will lift a government ban on big council tax rises this week in a bid to plug a growing social care black hole.
Local authorities have warned of a major cash crisis as the cost of looking after Britain’s ageing population continues to spiral.
The Prime Minister is expected to relax a law that stops councils from hiking the local levy by 4% or more unless they hold referendums.
But the move could add hundreds of pounds to people's annual tax bills, hitting struggling workers the hardest.
The boss of care homes lobby group Care England last night warned that pressure on numbers, spending cuts and a bigger wage bill because of big hikes to the minimum wage have turned the system into a dangerous “house of cards".
Martin Green told The Times: "The whole thing could topple over at any moment and those who are poor and vulnerable will suffer most".
And warning of an "absolute crisis"; coming, Andrea Sutcliffe, the chief inspector for social care, added: “The system is approaching a tipping point".
It also emerged last night that 250 residential care homes have closed since March and some 5,000 beds lost over the last 18 months.
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Mrs May halted Chancellor Philip Hammond from announcing a hike in the council tax maximum raise in last month’s autumn statement.
The PM feared the move would add to the burden on 'just about managing’ families.
But Local Government Secretary Sajid Javid will unveil the plan when he announces this year’s town hall funding package within days.
A senior Whitehall figure said: “We know that this isn’t going to be enough but it’s a first step.
"Be in no doubt everyone across government is well aware that this is a major issue that needs urgent attention.”