Town hall income dives

Author: Daily Mail   |  

Householders face above inflation rises in council tax because of the economic slowdown.

Three out of four councils say the money they collect to pay for front-line services has dwindled.

And as income from fees and charges, such as those for using gyms, swimming pools and car parks dries up, most have had to revise their budget forecast.

council tax

Struggling householders face another hike in council tax as the money councils collect for services like swimming pools, car parks and gyms dries up

As a result, there is less to spend on services such as care for the elderly or school books.

Almost three-quarters have had to revise their budget position, with 83 per cent reporting a drop in income from fees and charges, the Local Government Association found.

One in four has seen a decline in the amount taken in council tax and rent – and two-thirds of councils report a drop in income from the sale of assets.

Two-thirds of councils reported a drop in the cash received from the sale of assets such as land and buildings, while a similar proportion said the interest they received on deposits had dropped.

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