Cash-strapped West Berkshire Council is steadying itself for the Government’s fair funding review, due in the next few weeks, which could see wealthier authorities take a hit.
Cash-strapped West Berkshire Council is bracing for the upcoming Government fair funding review, which could impact wealthier authorities. Council leader Jeff Brooks (Lib Dem, Thatcham West) expressed his worries about how funding is distributed, stating, “We are a low deprivation area, and the money often heads for areas of high deprivation.” He highlighted the pressures on adult and children’s social care that don't correlate with the region’s deprivation levels.
Another concern is that the review might raise the limit on council tax hikes. Currently, councils can only increase taxes by 4.99% annually, which West Berkshire has stuck to, while others have sought permission to go higher. Earlier this year, six councils, including Birmingham and Bradford, were allowed to exceed these limits due to social care responsibilities, resulting in significant tax increases for residents.
With many households facing rising bills, the prospect of a shake-up in council tax is unsettling. Chancellor Rachel Reeves may implement several smaller tax hikes to address public finances, one potential option being a 'mansion tax' targeting owners of high-value homes in England. This could double council tax for top band properties and impact over 2,000 homes in Newbury alone.
Local authorities mainly rely on government grants, business rates, and council tax, the latter covering about a quarter of service spending. Council tax rates are set locally, based on property values from 1991, and any increase will heavily rely on these upcoming financial decisions.
Niki Hinman, Local Democracy Reporter
