The UK recession increases demand on local services
The ongoing recession in the UK has seen a large spike in applications for state schools, housing benefits, help for the elderly and other public services. This is set to place enormous pressure on local government budgets which have already been cut back by central government over the last few months. When you also throw in the recent losses on Icelandic bank deposits as well as suggestions that some local authorities have exposure to the alleged Madoff fraud we could see budgets come under serious pressure.
This would then probably result in local taxes increasing and further friction between the UK taxpayer, local authorities and the government. It could also put an end to the Scottish National Party's move for a local income tax system in Scotland which has created a hotbed of debate and controversy. The UK government is currently fighting on all sides to retain as much income as possible and reduce local government funding where possible in order to stop the haemorrhaging of taxpayer's funds.
Local authorities are very often the first port of call when the UK public have problems regarding the home, benefits and various other social services and there has been a substantial increase in enquiries.
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