Government Underfunding Risks Significant Council Tax Rise Warn Liberal Democrats

11.50.57am GMT Sun 4th Dec 2005

Essex County Council Liberal Democrats leader Tom Smith-Hughes has warned that the council could be faced with the difficult choice of a significant rise in council tax and being capped, or cutting crucial services such as social care, children's services, waste management and transport.

Cllr Smith-Hughes was responding to the all party Local Government Association report highlighting a £2.2billion shortfall in local government finances (largely due to spending pressures imposed by the government), unless the government injects substantial extra cash. The shortfall is equivalent to an average national council tax rise of 10% - around £100 a year.

Cllr Smith-Hughes has written to the leader of Essex County Council, Lord Hanningfield, asking officers to prepare a report on the funding pressures the council faces and that the implications be made available to the public.

Cllr Smith-Hughes said: "The huge black hole in local government funding will have serious implications for local services and council tax increases. The government must provide additional resources in the short term and must speedily publish proposals to reform local government finance."