Authority blame government for passing social care levy on to residents
Ealing residents are likely to face an increase in council tax bills from April as the authority tries to find ways of funding social care.
Whilst the core council tax remains frozen, government cuts will mean, for the first time, the council will pass on a 2% social care levy to residents.
The 2% precept would pay for services such as home care for older and disabled residents, dementia support services and protecting people from abuse.
On a council tax band D charge this will amount to £21.20 per year and which would generate £2.3million.
Also included in residents’ council tax bills is a precept to the Greater London Authority to help pay for policing, with the Mayor’s share of council tax bills due to rise to £280.02 for Band D taxpayers, an increase of £4.02 per year.
If councillors do decide to pass on the charge the council say it will still not generate enough funding to meet the increasing needs for adult social services. An additional £13million has been allocated from the council coffers ( 2017/18) to try and manage this demand.
The council says it has managed to freeze council tax rates for the previous eight years through 'careful financial management; acting decisively to make savings; working to boost the local economy and encouraging investment in the area, including much needed new homes.' It says this has generated millions of pounds in additional funds through business rates and council tax payments.
Council leader, Councillor Julian Bell, said: “We’ve continued to freeze council tax for as long as possible because we understand the financial pressures our residents face, especially the lowest paid."
“Over the past eight years this has meant council tax payers have benefited on average from a cumulative cash saving of £1,040.
“Despite extensive and sustained cuts to our government funding we have been successfully growing our way out of austerity. We have avoided putting up council tax, which many other boroughs have had to do, and have been investing substantially in social care.”
The council say the have identified £168million worth of savings since 2010, approximately 80% have already been achieved - the remainder will have to be delivered by 2020. The council expects its main government grant to reduce by a further £24.9million in the next four years.
Councillor Yvonne Johnson, cabinet member for finance, performance and customer services, said: “Social care is in crisis across the country and we need a national funding solution. Instead, the burden has been laid at the feet of local authorities as the government cuts funding and assumes we’ll pick up the tab.
“Looking after the borough’s most vulnerable people is one of the most vital things we do and also the most costly. But we cannot turn our backs on those who need us. Sadly this year we may have no choice but to pass on the government’s social care precept.”
Opposition councillors say the Labour group should be held accountable. Councillor Gary Malcolm, Liberal Democrat Group Leader, said: " Labour have wasted money over the past 8 years and when it gained an extra amount of money last year, rather than help some of the most vulnerable residents - many of whom are now in arrears and have court summons - they chose not to. They are an Ealing version of the film 'I, Daniel Blake?'
''Labour also increased some of the money to their own Councillors whilst closing day centre after centre. Liberal Democrats' number one priority is to protect the vulnerable and every council decision should detail the effect on vulnerable groups."
Conservative Opposition Leader, Cllr Greg Stafford, said, “Last year Ealing Labour over-taxed residents by £18.2m and put it into reserves rather than spend it on social care services. Had they done so, services would be saved and there would be no need to raise Council Tax this year. This increase (and the GLA tax increase by the Labour Mayor of London) will hit ordinary hard-working Ealing residents and needs to be fully justified.
''Along with over £100m in reserves that the Council holds, the Government has provided Councils with up to an extra £7.6 billion of dedicated funding for social care over the course of this parliament — significant investment to ensure that vulnerable people get affordable and dignified care as our population ages.
''Labour’s cry about cuts to Grants are crocodile tears as they know full well that the Government is phasing out Grant funding and replacing it with Business Rates retention; a move that Ealing Council claims to fully support.
''Indeed, the LGA’s own analysis shows that for this current Medium Term Financial period, Ealing’s cumulative cash change will be 2.7% better by the end of 2019-20.
''The only crumb of comfort is that this Labour tax increase is ring-fenced and will have to be used for social care provision, otherwise no doubt they would squander it or worse yet, use it to fund another increase in their councillor allowances.”
Last year, the council created a special £5million social care transformation fund for children’s and adult services which will be used to redesign services so that fewer people need intensive help in future years.
If the proposals are agreed by the cabinet, the recommendations will go forward for discussion at a meeting of the full council on Tuesday, 21 February when the budget will be set for 2017/18.
8 February 2017