Salford's mayor has defended a full council tax increase - which will be needed to pay all care workers the Real Living Wage - saying 'it's the right thing to do'.
Paul Dennett has proposed a council tax increase of 4 pc to guarantee all 4,000 care workers in the city are paid at least £9.90 an hour from April 1.
The council tax hike is made up of a 1.99 pc increase to the general levy and a 2 pc increase to the adult social care precept – the maximum increase allowed.
READ MORE: Council tax set to rise by nearly 4 pc in Salford to balance budget
It comes after two council tax hikes were approved by Greater Manchester's leaders in the last few weeks, costing Band D households a further £22 a year.
If approved, Salford residents will be hit by one of the highest council tax increases in Greater Manchester – but the mayor has defended the move.
He said: "I don't want to increase the council tax.
"If we could do everything we need to do, which includes paying our care workers the real living wage, dealing with the budget pressures, increasing some investment into skills and work to get people into employment – if we could do that without increasing the council tax then we absolutely would be."
"The reality is we can't do all of this without increasing the council tax."
The Labour mayor said local authorities have effectively been 'forced' by central government to raise council tax which most town halls are doing.
He said that the government expects all local authorities to increase the general levy by 1.99 pc and the adult social care precept by at least 1 pc.
However, because Salford council did not raise the adult social care precept by the full amount this financial year, the town hall can raise it by 2 pc next year.
Dennett conceded that the council can choose whether to add the extra 1 pc to the adult social care precept – but this is the last chance it has to use it.
And crucially, the cash is needed to fund a pay rise for Salford's care workers.
He said: "I genuinely feel for our care workers. They put their lives on the line early doors in the Covid pandemic when we had all those issues with PPE.
"For me, morally and ethically, this is the least we can do.
"If I had the money in the budget without increasing precepts and council tax, then I'd be paying these people more than £9.90 an hour."
The mayor listed a series of cost pressures the council will face in the next financial year caused by inflation, national insurance increases and pensions.
He also shared concerns about rising costs in the construction industry including an extra £1m needed for the Pupil Referral Unit in Pendleton.
However, he said the council is committed to restoring Buile Hill Mansion and to building more 'truly affordable' housing through development arm Dérive.
The self-proclaimed 'sensible socialist' said Salford council would invest in more capital projects if it had certainty about future government funding.
Conservative group leader Les Turner agreed that the one-year financial settlement for local authorities does create some uncertainty for councils.
But he questioned why council tax must rise when the town hall holds more than £200m in reserves and called for a review into how much can be used.
Asked about the pay rise for care workers, he said: "It's all right as long as you can afford it. It's nice if we can pay it. They're very hard working people and they deserve it. We have to find the money and maybe suffer elsewhere."
The Tory councillor who represents Boothstown and Ellenbrook said he would like to see more money put towards road repairs and anti-flooding measures.
Lib Dem councillor Andrew Walters said he has been 'urgently' fighting for an increase in funding to improve rubbish collection and recycling facilities – but he said it was not possible to do this in the budget for the next financial year.
He also commended the council's commitment to building affordable housing and supports the move to pay all care workers in Salford the Real Living Wage.
Speaking ahead of the full council meeting this week, he said: "The budget council is unequivocally the most difficult full council meeting of the year. It is very much a case of 'you’re damned if you do, and you’re damned if you don’t'.
"Should I vote for an increase in council tax, or should I vote to cut services and staff? Repeated Tory cuts to the council’s funding - £232m in the last decade – means that to do neither is simply not possible. Which is the better of the two evils?"
The budget, including any council tax increases, will be discussed and put to a vote by all councillors at a full council meeting on Wednesday (February 23).
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