The leader of Croydon Council has lambasted central Government’s approach to funding social care, and has warned the authority will fill the funding gap by increasing council tax.

In an angry letter sent to Sajid Javid, Secretary of State for Local Government, Councillor Tony Newman blasted an additional £1.9m cut to its funding.

This follows news that the authority claims to be one of the ‘biggest losers’ in the country as a result of the Local Government Funding Settlement, which outlines how much cash each local authority receives in grants.

LAST MONTH: Croydon Council among worst hit by funding cuts from central Government, the authority claims

In the letter, published ahead of the council’s cabinet meeting on Monday, January 23, Cllr Newman wrote: “This unsustainable cut to funding comes at a time of significant need for adult social care.

“Your Government continues to underfund social care and this continues to gravely impact some of the most vulnerable and in-need citizens in the country.

“And although we welcome the flexibility brought by the social care precept on council tax, it is clear that taking money from a housing pot to fund social care is not a competent, fair or long-term plan.

“The Government needs to properly fund adult social care, and not ‘rob Peter to pay Paul.’”

Cllr Newman added that, as a result of the changes proposed to the New Homes Bonus Scheme along with the adult social care support grant, the borough will see a £1.9m loss in grant in comparison to what was outlined in the four-year settlement.

He wrote: “This is within the context of the council already having made savings in excess of £100m since 2010.

“Even by the calculations of your Government’s published core spending calculator, and assuming councils will recover maximum council tax and social care precept, there will be real term reductions in council spending.

“And this is at the same time as Croydon experiencing unprecedented population growth and service demand.”

In October last year, the authority signed up to a four-year efficiency plan that set out its strategy for making £45m worth of savings by 2020.

Cllr Newman said this £19m financial black hole will diminish the council’s efforts and provide further uncertainty in its financial planning.

He added: “By undermining our four year plan, that you [Sajid Javid] only recently encouraged us to make, you have now weakened the good faith and trust in the relationship between the council and the Government.”

A spokesman for the Department for Communities and Local Government said: "Our long-term funding settlement means Croydon will have more than £1 billion to spend between now and 2020, allowing them to deliver the services that local people want.

“Reductions in the funding for New Homes Bonus are being recycled to respond to pressures on adult social care.”

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