Council tax more likely to go up under Conservatives than Labour or Lib Dems, Institute for Fiscal Studies suggests
The Institute for Fiscal Studies has published a briefing on the Conservative, Labour and Liberal Democrat plans for local government funding. This is not an issue that has attracted much attention in the campaign so far, but it deserves some focus because councils provide vital services – and the gap between what’s on offer from the Tories and Labour is vast.
Although the Conservatives claim to be a low-tax party, under their plans it is more likely that council tax would have to rise, the IFS suggests.
Here is an excerpt from the briefing, which covers plans for local government funding in England:
'The money allocated by the Conservatives would not be sufficient to meet rising costs and demands over the next parliament even if council tax were increased by 4% a year, necessitating a further retrenchment in services or unfunded top-ups to the plans set out.
The Labour party has allocated more than enough money to meet rising costs and demands, allowing increases in service provision and quality, although not enough to restore them to 2010 levels. That is true even if council tax were frozen – although Labour has no plans for such a freeze.
The Liberal Democrats have allocated enough money to meet rising costs and demands if council tax is increased by 2% a year – although only if some the funding earmarked for bus services, youth services or homelessness is used to meet these pressures.'
Of course, there would be less need for council tax rises under Labour because local authorities would be getting more funding as a result of tax increases imposed by Labour elsewhere in the system.
Council funding in England has fallen by 24% per head since 2009-10, the IFS says.
(Guardian)