Cost of school dinners to increase as councils run out of money

Households face higher charges for parking, waste collection and even school dinners as cash-strapped councils raise prices in a desperate bid for cash. ’s reorganisation of local government, which has led to the suspension of some local elections, has added to the financial crisis facing councils, according to experts.

Higher fees and charges will come on top of an inflation-busting increase in council tax, with authorities complaining that much of the money from the hike will go straight to the Treasury in the form of higher National Insurance contributions. A survey of council leaders and chief executives by the Local Government Information Unit (LGIU) found 88% of councils – almost nine out of 10 – are planning to increase charges on services “from everyday expenses like car parking, planning and green waste collection, to more emotive areas such as social housing rent, school dinner charges, and burial and cremation charges”.

The think tank said: “Many respondents explicitly stated that these increases would be at above-inflation rates.”

But councils insist they need the money, with three in 10 saying they are on course to follow the example of Birmingham City Council, which in 2023 issued a Section 114 notice effectively declaring itself bankrupt.

The “rushed” changes to councils introduced by Ms Rayner, the Communities Secretary and Deputy Prime Minister, have made the financial worries worse, the think tank warned. The Government wants to abolish many district councils and create more regional authorities similar to those in Greater Manchester and the West Midlands. Nine council elections planned for May were delayed as a result.

Jonathan Carr-West, chief executive of the LGIU, said: “To put it bluntly, respondents are not happy with the way that reorganisation is being carried out. The vast majority feel that the Government is not providing enough clarity, enough genuine involvement for councils in the process, or realistic timeframes. And, critically, most do not believe that it will solve the financial problems that councils face.”

Nine out of 10 councils are imposing above-inflation council tax increases of at least 4.99% from April. The Local Government Association (LGA), which represents authorities nationwide, predicted another huge increase would be needed again next year. But much of the money raised will be needed to fund an increase in employer National Insurance contributions introduced by the Treasury, which will impose a net cost on councils of £1.2billion.

Lord Fuller, a former leader of South Norfolk District Council and vice-chairman of the LGA’s Economy and Resources Board, said the “clear majority” of council tax rises “will be passported straight to the Treasury through the National Insurance tax”.

He said: “It means that most of the extra tax paid by council taxpayers next year will not even benefit the local taxpayers themselves.”