COUNCIL tax looks set to rise by almost five per cent.

Bury Council's budget proposals show it is looking at a 4.94 per cent increase in council tax, including a three per cent increase for social care spending.

According to the council, this would provide it with funds of £78.9 million.

The three per cent social care increase is part of a 2017 to 2020 budget agreed last February. Last year, the government announced that over a three-year period, local authorities could increase their council tax by up to six per cent to be used for social care.

In February last year, the council agreed it would raise council tax by three per cent in 2017/18. It planned to increase it by three per cent again in 2018/19.

If this is agreed, under the current rules it could not be increased again next year for social care.

Finance and housing cabinet member for the council, Cllr Eamonn O'Brien, said: "The council budgeted for this level of increase as part of its three-year budget strategy, which was set at last year's budget council.

"Within this, it was decided that we would raise the social care precept by three per cent because adult social care is by far the council's biggest cost and is growing significantly in terms of demand.

"We will make a final decision about the council tax levels at the budget council meeting."

The council is attempting to balance its budget with a baseline (excluding council tax) of £45.706 million made up of business rates, top up and its revenue support grant. This is down 6.6 per cent on last year's baseline.

The documents say: "The reductions for Bury are on top of what is already a very low funding base. The amount of Government support per head of population is significantly lower than that of all classes of authority."

It sets out that Bury's funding per head is £241.10 whereas the Manchester average is £328.76 and the England average is £282.24.

Steve Kenyon, interim executive director of resources and regulation, said: "Funding is based upon the Government's perception of relative need.

"This is formula driven — and the formula does not work in Bury's favour.

"The formula is heavily based upon claimant count — and Bury's is relatively low.

"Claimant count might have been appropriate in the '80s and '90s, but it no longer reflects the needs or cost drivers in a particular area.

"The biggest cost now is social care — especially adults, and we feel this should be more prominent in the formula.

"The Government is reviewing the formula — the Fair Funding Review — and this will be the basis of our submission.

"Also worth noting, that while funding levels are very different, all local authorities actually work within the same legislation, and provide broadly the same services."

The Settlement Funding Allocation (SFA), which makes up this baseline and is partly judged on the number of people claiming income-based benefits such as job seekers allowance.

The department of Housing, Communities & Local Government admits this is not perfect especially as the rollout of Universal Credit has skewed the numbers.

Cllr O'Brien said: "The Government response to the funding crisis in local government has been to push the burden onto local taxpayers by raising local taxes to pay for social care.

"At the same time, it is ignoring the devastating consequences this has on the poorest and most vulnerable residents, and the local services they rely on.

"The Tories only seem to pay attention to their mistakes when Tory councils like Northamptonshire are in financial trouble and need bailing out.

"We will keep campaigning for fairer funding because our borough deserves better than this.”

The budget documents including the 4.94 per cent increase are due to be looked at by the council's overview and scrutiny committee on Wednesday.

They will be considered at the cabinet meeting on Wednesday, February 21, and be subject to debate and approval at the full council meeting following it.