Salford City Mayor Ian Stewart has slammed the government for forcing a council tax rise in Salford for the first time in six years.
Salford City Council has joined other Greater Manchester authorities in raising local council tax to meet severe rising social care costs and address the gap created by reductions in central government funding.
The proposals come after the government ended funding to local authorities to keep council tax frozen and in the face of further budget cuts and rising costs.
City Mayor Ian Stewart said “We have frozen council tax in Salford for the last six years despite the most stringent government budget cuts local authorities have ever seen.
“Between 2010/11 to 2016/17 the council has had to make savings of £171 million to balance its budget. We have had to manage a 42.4% reduction in our core government funding – this equates to a cost of £753 to every dwelling in Salford.
“We have done our best to manage these savage government cuts alongside increasing costs and pressures on services.
“Now, just as I predicted four years ago and each year since, to protect the most vulnerable we are now forced to raise council tax.
“Unfortunately the government has withdrawn extra funding which was available to help local authorities avoid raising council tax and we are already faced with finding another £22m worth of savings to make our budget balanced and legal this coming financial year.
“Because of that, sadly, we are forced to now increase council tax by 3.75%. Two per cent of this will generate £1.6m ring fenced for rising social care costs, which will enable the council to continue to protect the most vulnerable people in our city.
“The increased costs come from implementing the government’s national living wage in the Salford social care sector from April which hasn’t been covered with additional government funding to Salford. I do this with a very heavy heart as I know it puts extra pressure on local people but we need to do all we can to try and protect the most vulnerable in the city.”
Council tax in Salford will rise by 3.75% in April. This includes the 2% increase, generating £1.6m, to be used exclusively for adult social care services. This will help meet some of the costs of introducing the government’s national living wage for social care workers from April 1 this year which is estimated will cost £2.7m in 2016/17.
Alongside the council tax increase the council has to find £22m of budget savings for agreement in order to balance the books for 2016/17.
City Mayor Ian Stewart added: “We have developed proposals that can deliver service transformation, efficiencies and income generation and, where cuts have been necessary, we have tried to minimise the impact upon service users and residents.
“We’re committed to doing things differently to make the most of the diminishing budget that Salford gets. Horrendously difficult decisions are still needed to agree a balanced and legal budget.”
Local residents were asked to comment on the budget proposals and their feedback, ideas and suggestions have been taken into account in drafting the final report. The budget was agreed at the full council meeting today. (24 February 2016).
The increase in both council tax and police and fire precept increases council tax by £37.25 a year for Band A properties – around 71p a week and less if single persons discount is applied.
The increase, without discount, will be £55.89 for Band D properties – around £1.07 per week. The vast majority of properties in Salford are in these lower valuation bands.
