SURREY residents face a four per cent increase in council tax as well as cuts to services to plug a £35million-plus hole in the county council’s 2016 budget after government grant cuts and the cost of implementing the new Care Act.

Greg Clark, Secretary of State for Communities and Local Government, said last week when unveiling the provisional local authority grant settlements, that town halls could introduce a dedicated precept of up to two per cent to spend just on adult social care.

The new social care precept – an equivalent to £24 per year on an average Band D home – is to provide dedicated caring for the growing elderly population. A further £1.5billion will be available to councils to work with the NHS to ensure care is available for older people following hospital treatment through the Better Care Fund.

The Government will allow councils to increase council tax by up to two per cent on top of social care precept. The Local Government Association calculated council funding will fall by 6.1 per cent, or £2.6billion, in 2016-17.

A Surrey County Council spokes-man said: “This is a complex set of documents and we won’t know the full implications until the settlement is finalised by the Government early next year. But it will make setting our budget in February a very tough task.”

Responding to the possible council tax hike, Surrey Residents’ Association and Independent Group leader Nick Harrison said: “Residents will not support this decision. People in Surrey will be facing a four per cent increase in their council tax bills while their salaries are stagnant.”

Waverley has calculated it faces a swingeing 52 per cent cut in its revenue support grant, equivalent to £800,000.

Leader Robert Knowles said: “I am horrified the Government is cutting 52 per cent from our grant. Over the past few years Waverley has faced significant financial pressures and has responded to them effectively by delivering savings exceeding £9million per annum – and keeping council tax frozen over the past six years.

“This is much more of a severe cut than was initially anticipated and means Waverley may have to cut services and increase council tax just to balance the books. The Government is determined to strip Waverley of its financial resources. This year a 52 per cent reduction – next year virtually no grant at all. Also, the promise made by government that Waverley, like other authorities, will be able to keep more of the business rates they collect, also seems to be a false promise as this announcement suggests no extra money is coming to Waverley.

“On the one hand, the government is extending the New Home Bonus with the guise it is for the delivery of new homes, when really it is a just a sweetener to local authorities but no substitute. Using the bonus to replace the grant is basically dishonest, unsustainable and forcing even more pressure on Waverley and the South East.

“The Government is trying to bankrupt us. The cut in grant should also be viewed alongside the financial impact the new Housing and Planning Bill will have. The Government is forcing Waverley to decrease rents on council homes by one per cent every year for the next four years, and will force us to sell-off our most valuable houses. This will take a further £300million out of our housing budget over the next 30 years and severely impact on our ability to provide homes and maintain decent standards in existing homes.”