Tory council to hold referendum on 15% council tax hike to pay for social care

Surrey County Council said it had a “huge gap” in its budget as a result of cuts from Westminster.

The council, which includes the constituencies of both Chancellor Philip Hammond and Health Secretary Jeremy Hunt, will need the approval of local voters to implement the hike.

Surrey County Council leader David Hodge said: “We have to set a budget that will protect vital services for Surrey residents.

“Government has cut our annual grant by £170 million since 2010 – leaving a huge gap in our budget.

“Demand for adult social care, learning disabilities and children’s services is increasing every year.

“So I regret, despite us finding £450 million worth of savings from our annual budget, we have no choice but to propose this increase in council tax.”

The move will add almost £200 to average B and D council tax bills in the county.

Since the 2012/13 financial year, local authorities have been required to hold a referendum if they want to increase council tax beyond a Whitehall-imposed threshold.

For councils with responsibilities for social care that threshold is set at 5% – far below the increase sought by Surrey.

Surrey’s move could be followed by other authorities who face pressures on their budgets.

Claire Kober, chairwoman of the Local Government Association’s resources board, said: “After years of striving to keep council tax as low as possible or frozen, many town halls have found themselves having to ask residents to pay more council tax over the next few years, particularly to try and offset some of the spiralling costs of social care.

“Services supporting the elderly and disabled are at breaking point.

“It cannot be left to council taxpayers alone to try and fix them.

“Only genuinely new additional government funding for social care will give councils any chance of protecting the services caring for our elderly and disabled.”

The proposed referendum would take place on May 4, alongside the local elections.

A Department for Communities and Local Government spokesman said: “If the council sets this proposed budget, then the taxpayers of Surrey will have the final say in a referendum in May. We should trust the people.

“Our long-term funding settlement means more spending power for Surrey County Council during this parliament, with £3.2 billion to deliver the services that local people want.

“This Government has also announced almost £900 million of additional funding to tackle pressures on social care over the next two years. But money alone is not the solution.

“We are clear that we need to find a long-term sustainable solution, including making sure all councils learn from the best performers to raise standards across the whole system.”

Liberal Democrat health spokesman Norman Lamb, a former minister, said: “The social care crisis has reached the Health Secretary’s own back yard. The onus is now on him to tell the Prime Minister that enough is enough.

“The Government simply cannot continue to pass the buck on to local authorities.”

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