Council Tax Bombshell
Council Tax Bombshell

New analysis of the Local Government Finance Settlement reveals Conservative plan for 2021: Pay more, Get Less

New analysis of the Local Government Finance Settlement reveals a whopping £2 billion Conservative Council Tax bombshell for English taxpayers – over £6million in Calderdale

The council tax hike comes with final confirmation that Government will not meet its promise to cover the local cost of COVID-19, forcing cuts in services – while the vast majority of any additional spending power will be funded by local residents, not Whitehall.

  • Coronavirus alone has cost Calderdale Council an additional £27.7 million in 2020, yet in the Local Government Finance Settlement the Conservative government has announced that the council’s spending power will increase by under £8million
  • Most of this will come from local council tax rises – £2bn across the country, with the government announcing that council tax should raise an extra £6million locally.
  • Across the country, the pandemic has left local authorities with a £7.4bn blackhole as Ministers reneged on promises to stand behind council spending to tackle the virus.

The hugely disappointing settlement for local communities comes as the New York Times published new data revealing that more than half of £22bn of Coronavirus contracts have been awarded to companies with political connections and no prior experience, or with histories of tax evasion, corruption or human rights abuses.

Cllr Tim Swift, Calderdale Labour Group Leader said,

“After a dreadful 2020, the Conservatives revealed their plans for 2021 – a £2bn council tax bombshell and cuts to local services. Pay more, get less. That’s a real kick in the teeth for the people of Calderdale.

“This government can apparently afford billions in public money for their friends who have got rich off the back of Covid-19, yet when it comes to Calderdale and places like us, they tell us the cupboard is bare. Instead of giving us the support we need – a tiny fraction of the fortune we now know they have doled out in dodgy contracts – they are forcing cuts to local services like social care and smashing residents with a £6million council tax hike for the privilege.  

“All we want in Calderdale is our fair share. The Conservatives promised to stand behind our community in tackling COVID-19 – £27.7 million already – but now they are nowhere to be seen, leaving us with a giant blackhole.

“Once again the Conservatives have shown the people of Calderdale what their priorities really are – and it’s not us.”  

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