Newcastle residents could face council tax increases totalling as much as 20 per cent over the next four years as the Conservative Government continues to cut funding for local services.
George Osborne’s funding settlement expects councils to raise more money directly from residents while government support is withdrawn. Newcastle Labour has warned that this amounts to a new “Osborne tax”, with local people being asked to pay more while receiving fewer services.
Since 2010, Newcastle has already been forced to make unprecedented savings as government funding has been cut. Further reductions will place even greater pressure on services including social care, libraries, environmental services and support for vulnerable residents.
The Government has also introduced a new council tax levy intended to help councils meet the rising cost of adult social care. However, the amount raised in Newcastle will not be enough to cover increasing demand—and councils in wealthier parts of the country will be able to raise considerably more.
This leaves Newcastle residents being hit twice: first through cuts to the funding available for local services, and then through higher council tax bills intended to make up part of the shortfall.
Councillor Nick Forbes, Leader of Newcastle City Council, said:
“The Government is trying to shift responsibility for its cuts onto councils and local residents. George Osborne is reducing Newcastle’s funding while expecting local people to pay substantially more through their council tax bills.
“This is effectively a new Osborne tax. Residents will be asked to pay more, but the money raised will not come close to replacing what the Government has taken away.
“We will continue to do everything possible to protect essential services and support the people who need them most, but ministers must provide Newcastle with a fair and sustainable funding settlement.”
Newcastle Labour will continue to campaign for fair funding and oppose a system that protects wealthier areas while placing a disproportionate burden on cities such as Newcastle.