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Date published: 16th December 2016

In the Government’s Provisional Local Government Finance Settlement announcement this week said it would be looking to divert money assigned under the New Homes Bonus to social care.

Money for council services comes from government grants, income raised by the council and from Council Tax. Under the deal announced this week the district council will receive less money from the New Homes Bonus.

In effect there will be no new money from central government to help fund social care; instead some of the money that would have gone to support council services, as a result of new homes being built, will be diverted to social care budgets.

This will shift the burden of tackling social care onto councils and residents.

Under the deal announced this week Norfolk County Council would be able to levy up to 6% over the next 3 years on top of their current charge – just to pay for social care.

District council finance bosses are now scrutinizing the announcement to see how the news could affect the future funding for the district council.

North Norfolk District Council services are paid for by a mixture of government grants, council tax and income.

Only 9p out of every pound of Council Tax collected is spent on NNDC services, 75p goes to Norfolk County Council; 13p goes to Norfolk Police Authority and 3p goes towards Town and Parish Councils.

Last updated: 24th January 2017