Cost of living crisis ‘may affect council tax collection’ warn finance bosses

Last year chancellor Jeremy Hunt said councils would be able to increase council tax by up to three per cent for 2023-24 without a referendum, and the social care precept by up to two per cent.

Last year, residents faced a council tax hike of 3.5 per cent, equating to an extra £55.51 per year for Band D properties in Barnsley.

The increase was made up of a two percent rise to pay for adult social care services, and a 1.5 per cent rise for council services, such as road maintenance, bin collections, recycling, and library services.

A report to go before Barnsley Council’s cabinet this week states: “It is anticipated that the cost of living crisis will impact council tax income collection rates as households struggle to meet rising costs.

“The council will continue to monitor the situation but slower than anticipated collections could impact the council tax base.”

The report adds that the number of empty properties has reduced in the last 12 months, and that the council’s empty homes team will “continue the focus on supporting landlords with empty properties and to bring long term empty properties back into use”.

It adds that although the council expected the number of households claiming council tax support to reduce as households returned to work post-pandemic, “this has not been the case and levels have remained consistent throughout the financial year”.

BMBC is expected to use some of its reserves to pay for essential services this year, as it faces a budget black hole of £12.5M.