This is what Sheffield Council had to say about increasing council tax
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Sheffield Council has an overspend so far of £23.4 million of which £18 million is related to coronavirus and predicted a £70 million pressure from coronavirus in May.
It received some funding support from government but warned it would need much more otherwise it would get into a “very difficult position”.
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Hide AdOther councils already announced they will be increasing council tax next year as a way to stay afloat such as Nottinghamshire County Council which said it will need to increase tax by about 10 percent.
But Sheffield’s local authority said it was “too early” to know if they will increase residents’ contributions.
Eugene Walker, executive director for resources at Sheffield Council, said: “Local authorities across the country have faced financial difficulty as a direct result of covid-19. Council tax is an important, but a relatively small source of funding for the council. It accounts for around 15 percent of our spending for 2020/21, and raises around £208 million each year.
“We are already planning financially for next year and beyond, and it is expected that the council’s cabinet will receive a report on medium-term financial projections in the autumn.
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Hide Ad“At this stage, it’s far too early to speculate on council tax increases. The level of government support will be critical however, as the financial support the council will receive beyond March 2021 is currently unknown.”