, , , , , ,

‘Prime Minister must scrap council tax rise for families’ says Portsmouth MP

Labour has today urged Government to properly fund local authorities so that proposals for a planned 5% council tax rise can be scrapped. Under current plans drawn up by Ministers, Government would allow local authorities to increase council tax – meaning a £89 increase to annual household bills for the average Band D home in Portsmouth.

Current Government plans would make families pay for a £2 billion hole in council budgets.

The vote follows an appeal from Labour leader Keir Starmer to stop the council tax rise and provide certainty to millions of struggling families who face additional blows to their household incomes from frozen pay and a cut to Universal Credit.

Under the Government’s proposals, households living in Band D will face an average rise of over £90 next year under plans set out in the Comprehensive Spending Review. It means council tax will have risen by 33% under the Conservatives.

Portsmouth City Council faces a funding gap because of income lost during the pandemic and the additional costs of keeping communities safe from COVID-19.

Conservative Communities Secretary Robert Jenrick said councils would be funded to do “whatever it takes” to support their communities but later backtracked and suggested councils should share the burden of their lost income.

Stephen Morgan MP, said:

“The Covid-19 pandemic has had a catastrophic impact on council finances. According to the Local Government Association, the latest figures from the COVID monitoring survey put the financial impact of COVID-19 on local authorities at an estimated £9.7 billion for 2020/21, with a further £2.8 billion of lost income from council tax and business rates.

“At the outset of the pandemic the government promised to do whatever was necessary to support councils in their fight against Covid-19, but Ministers have failed to do so.

“This Government should not be making families pay for their mishandling of the pandemic and their broken promises to support councils”.

On the vote today and opposition day debate, the Portsmouth South MP added:

“Families across our city are facing serious pressures currently, but instead of supporting them, the government has decided to add to their hardships.

“These next few months are going to be incredibly tough for many families, which is why Labour is calling on the government today to stop the council tax rise and properly fund councils, otherwise local authorities will be left with little choice to protect the services we all rely on.

“Government must provide certainty to millions of struggling families, following the recently announced blows to their household incomes from frozen pay and cuts to Universal Credit.

“That’s why I’m urging the Prime Minister to scrap the council tax rise.”

Mr Morgan has recently called on the government to support families through this latest lockdown period, criticising the mid-January announcement that free school meals would not be provided by the government through February half-term.