Council tax rises on table as Sheffield faces budget gap

The city’s council, which brought a four year council tax freeze to an end last year, is considering a near four per cent increase in bills.

It is expecting to raise bills by the 1.99 per cent allowed by the Government before councils have to ask voters in a referendum for permission to increase bills further.

The authority is also expecting to use a new power to increase bills by a further two per cent to raise money to help meet rising social care costs.

Council leaders have also warned as many as 400 jobs may have to go as they try to find £50 million in savings to deal with cuts in funding from central Government.

Coun Ben Curran, the council’s cabinet member for finance and resources, said: “These Government cuts are continuing to hit the city and the days of austerity are far from over for the people of Sheffield, despite Government promises to the contrary.

“Our pledge is still to make sure we protect the most vulnerable in society and we will endeavour to make this happen. That is why the council tax hardship fund is increasing to protect those who need us most.”

“The reality is by the end of 2016/17 we will have had to make £350m of savings from our budget with the predictions of further cuts to still come in future years.”

The Government has said it wants to phase out all grants from Whitehall to local government by 2020 and for councils to support themselves through charges, council tax and business rates income.

Coun Curran said: “In effect the Government is forcing councils down the route of increasing taxes through council tax and the social care levy.

“There is a national care crisis which is well documented and the levy doesn’t come close to filling the gap we need it to.”

He said Whitehall grants had traditionally been a way of supporting poorer areas and the move to councils relying purely on their own income would benefit wealthier authorities.

Members of the public will be able to learn more about the council’s budget and proposals for balancing the books from councillors and council officers at an event at the town hall running from 6pm until 8pm tomorrow.