Javid Nicks 240m from New Homes Bonus to Fund Social Care

The Sun

PLANS to allow Councils to bring forward tax increases of 6% to pay for social care have been announced by Sajid Javid.

The proposal will add more than £90 to the average bill for a Band D property.

The Communities Secretary said millions of extra money would be put into social care

It will allow councils to raise hundreds of millions of pounds – £208m in 2017/18 and £440m in 2018/19 – to spend on looking after frail and elderly people at home.

Theresa May says it will help relieve pressures on the system, but that better organisation also was needed to make sure money was being spent well.

Opposition politicians called on the Government to scrap a corporation tax cut

Mr Javid, the Communities Secretary also said that there will be a reform of the new homes bonus to reallocate an extra £240m to social care.

But councils say the money will not be enough to plug the gap.

Labour’s Shadow Community Secretary, Gareth Thomas, said in response that ministers were still failing to grasp the severity of the situation.

“There is no new money,” he said. “Moving money around in a few years time isn’t going to tackle the crisis now.

“Is this really the best time to be cutting corporation tax?”

He said it was a “crisis made in Downing Street” and urged ministers to reverse corporation tax cuts to help fund it.

At Prime Minister’s Questions on Wednesday, he urged the PM to instead scrap plans to cut corporation tax from 20% to 17% in order to plug the spending gap.

Former chancellor George Osborne announced last year that town halls would be permitted to add a 2% “social care precept” onto bills to raise £2 billion a year to help deal with the growing crisis in the sector.

Now authorities will be able to impose the total 6% rise over two years rather than three, meaning a 3% precept would be added to bills in 2017/18 and 2018/19 but 0% in 2019/20.