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COUNCIL TAX RISE WILL NOT PLUG CARE CASH SHORTFALL SAY LOCAL LIB DEMS

by Ian Shires on 22 December, 2016

557_iStock_000004996552MediumLib Dems on Walsall Council have revealed that the Government’s plan to allow the Council to raise council tax by 1% will only raise a small proportion of our council’s social care budget – just 1.1%. This means that older and disabled people will still face a massive shortfall in the funding needed.

Figures released by the local Lib Dems show that there will still be a shortfall of £1,009,909 after the extra sum that could be raised by a 1% increase in council tax is taken into account.

Cllr Ian Shires, Lib Dem Group Leader said: “If council tax was a fair tax, relying on it to plug the gap might be acceptable. But it is not. A millionaire can end up paying the same amount as a teacher or a nurse because of the way that the system works.

Poor people pay a much higher proportion of their income in council tax than rich people. In places like Walsall, the needs of the extremely poor will be paid for by other poor people if council tax is the only route for dealing with this problem. And the amount raised will vary dramatically across the country.

The 2 per cent increase last year brought in about £360 million nationally and still leaves a predicted gap of £2.7 billion by 2020. We need root and branch reform of how our social care system is funded and I am pleased to see that the Liberal Democrats are calling for politicians to put aside their differences and do just that.”

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