Boris Johnson’s plan for local government could lead to council tax hikes, a leading economic think-tank has warned.
The Institute for Fiscal Studies has said the funding allocated in the Conservatives’ manifesto “would not be sufficient to meet rising costs and demands over the next parliament even if council tax were increased by 4% a year”.
They said the party’s manifesto announced no additional funding other than £500million a year for potholes, meaning authorities will have to rely on council tax increases and business rates revenues to balance their budgets.
Alistair Carmichael, who is standing for the Liberal Democrats in Orkney and Shetland, said: “Boris Johnson wants to balance the budget on the backs of local councils, making unfunded promises on social care and expecting others to foot the bill.
“They are choking off the success of local authorities, expecting them to provide more and more with less and less funding.
“Unfunded policy plans leave local communities in the lurch.”
The Lib Dems could fund their pledges through a 2% rise in council tax, the IFS estimates.
The IFS’ associate director David Phillips said: “The differences between the parties’ plans for council funding are stark, and imply vastly different future directions for the country.
“Taken at face value, the Conservatives plans wouldn’t meet the rising costs and demands for local services – necessitating a further retrenchment in services or unfunded top-ups to the plans set out.”
A Tory spokesman said: “Conservatives are the only party which has committed to protect local taxpayers from high council tax rises, by allowing residents to veto hikes via a local referendum.
“Both Labour and Liberal Democrats would hike up property taxes on the homes of hard working people and pensioners.”
