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CASH-STRAPPED COUNCILS

Council taxes set to rise by almost 5% across the country to pay for more social care but other services will STILL be cut

COUNCIL taxes are set to rise by almost five per cent across the country but services will STILL be cut, the Local Government Association (LGA) has warned.

Earlier this year the Government said it would allow councils to raise their taxes to pay for more social care provisions in the community - and most are considering doing so.

 Jeremy Corbyn accused ministers of arranging a "sweetheart deal" with Surrey council over social care
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Jeremy Corbyn accused ministers of arranging a "sweetheart deal" with Surrey council over social careCredit: PA:Press Association

But councils are still warning of cuts to come, and say that the money they will get won't be enough to offset continued cuts to their funding from central Government.

The LGA said that the cost of care for elderly people is forcing up their bills.

And they face a headache in April when the minimum wage goes up again from £7.20 to £7.50 an hour. The extra £543million that will be raised by the taxes will be swallowed up by the £600million cost of paying the increased wages.

 Councils are allowed to increase their taxes if they will use it for social care
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Councils are allowed to increase their taxes if they will use it for social careCredit: PA:Press Association

Out of 151 councils, 147 have already agreed to, or are planning to raise their bills by between one and five per cent.

Three quarters are set to put in the maximum hike.

But the LGA said that further cuts will be needed as councils are being pushed "perilously close to the edge".

Lord Porter, LGA Chairman, said: "Extra council tax income will not bring in anywhere near enough money to alleviate the growing pressure on social care both now and in the future. The social care precept raises different amounts of money in different parts of the country.

"Without genuinely new additional government funding for social care, vulnerable people face an ever uncertain future where they might no longer receive the dignified care and support they deserve. This is not only worse for our loved ones but will also heap further pressure and wasted expense on the NHS."

 Communities Secretary Sajid Javid insists that local councils are getting more funding
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Communities Secretary Sajid Javid insists that local councils are getting more fundingCredit: Getty Images

Earlier this month Surrey Council dropped its plans for a referendum on a 15 per cent hike in council tax after coming to an arrangement with the Government.

Jeremy Corbyn accused ministers of a sweetheart deal after leaked texts were revealed.