Social care: No plans in Wales to allow council tax rise

There are no plans to let local councils in Wales raise council tax to pay for social care, the Welsh Government has said.

Councils in England are already allowed to charge an extra 2% to fund social care, but the figure could be raised.

The Welsh Local Government Association (WLGA) said councils face a £92m "black hole" in social care budgets next year.

It said councils would continue to call for social care to be fully funded centrally by the Welsh Government.

For the first time this year, councils in England have been able to add 2% to council tax bills through an extra charge called the social care precept.

It is understood the UK government could confirm later this week it will grant permission to increase the precept to raise even money.

No such system has been introduced in Wales.

The WLGA said cuts to social care budgets have been lower in Wales than in England, but added that authorities still faced a £92m black hole for in funding for social care in 2017-18.

It said council tax would have to rise by 8% to cover the gap, equivalent to 6% of the entire social care budget of £1.6bn in Wales.

Currently, there is an informal cap of 5% on council tax increases in Wales.

Budgets 'to double'

A spokesman for the WLGA said: "The social care funding crisis in England shows what happens when the system becomes chronically underfunded.

"Placing the burden on the council tax payer is not a long-term solution for a problem which requires a more sustainable approach.

"In Wales, social care budgets are forecast to double by 2031 to keep up with demand, according to a recent report by the NHS Foundation.

"In 2017-18 alone, councils in Wales are facing a £92m pressure, half due to the demographics of an ageing population and half due to workforce pressures such as the National Living Wage.

"Councils are having to absorb these pressures next year but we will continue to call for them to be fully funded centrally."

The Welsh Government has said next year's provisional budget gives local authorities a "stable platform", and it expected local authorities to limit the impact on taxpayers when council tax levels are set.

The 22 councils will share £4.1bn of central funding next year, a cash increase of £3.8m on 2016-17 but a real terms cut once inflation is taken into account.