Council tax rise set to be reduced ... by 0.01%
CITY council leaders are poised to slash a controversial council tax hike – by 0.01 per cent to avoid Government intervention.
The authority wants to snub a Government cash incentive to freeze rates for another year by increasing bills by 3.5 per cent, or £26.68, for Band A properties.
-
Councillor Andy Lilley, chairman of the task group that recommended a 3.5 per cent rise in council tax.
But it is now considering making the increase 3.49 per cent.
If the new idea is adopted, residents in Band A homes will save 7p a year less than first intended.
Campaigners today called the move “patronising” and “an insult”.
The council task group, which recommended the 3.5 per cent rise, said it wanted to avoid any lingering threat of Government intervention.
It follows an announcement by Communities Secretary Eric Pickles that councils will be forced to hold a referendum if they impose “excessive” increases of more than 3.5 per cent.
Councillor Andy Lilley, chairman of the task group, said: “Our understanding at this stage is that we would be OK at 3.5 per cent, but it would be better to come in underneath if we do increase council tax.
“The recommended rise is being amended to 3.49 per cent.”
Jim Gibson, chairman of the Chell Heath residents’ association, said: “It is patronising. John van de Laarschot needs to realise people, including his own staff, are losing their jobs.
“The price of everything is going up. I don’t know where they think the money will keep coming from.”
The council said it needs to increase tax to fund its “invest to save” strategy.
Cuts of £24 million are planned for 2012/13, but £5 million could be reinvested to boost the local economy.
The Government’s tax freeze incentive would provide about £2 million, equivalent to a 2.5 per cent increase.
But unlike last year’s incentive, the cash is only guaranteed for one year. That means the council would not be compensated for the knock-on loss of income in future years.
Increasing tax by 3.5 per cent this year will raise £800,000 more than the Government’s offer would provide, but it would mean future annual percentage increases would raise much more because the starting point is higher.
Councillor Sarah Hill, cabinet member for finance, said many residents had struggled to understand the authority’s thinking.
She said: “When I speak to people, their automatic reaction is that they don’t want to pay any more at all. It’s complex and difficult to explain.”
Rent for council tenants is also set to rise by 6.91 per cent, based on a Government formula, which will see the average weekly rent bill rise from £60.65 to £64.84; an extra £218 in a year.
Councillor Dave Conway, leader of the opposition City Independents, said: “It is an insult. People won’t be fooled by it. Everything is going up except the family budget.”
Robert Oxley, campaign manager at the TaxPayers’ Alliance, added: “The hollow gesture of reducing a planned council tax rise by 0.01 per cent is nearly as insulting to residents as the original rise.”
Tax is to be frozen by Staffordshire County Council for another two years, and Newcastle Borough Council plans to freeze it in 2012/11.
13 Comments
View all
by InsiderOut
Sunday, February 12 2012, 11:27AM
“1
Brighton & Hove City Council
Green
3.50%
2
Chesterfield BC
Labour
3.50%
3
Darlington BC
Labour
3.50%
4
Leicester City Council
Labour
3.50%
5
Middlesbrough Council
Labour
3.50%
6
Preston City Council
Labour
3.50%
7
Redcar & Cleveland
Labour
3.50%
8
Stockton-on-Tees
Labour
3.50%
9
Barrow BC
Labour
3.49%
10
North Dorset DC
Conservative
3.49%
11
Stoke-on-Trent City Council
Labour
3.49%
12
Gravesham BC
Labour
3.48%
13
Dover DC
Conservative
3.45%
14
Taunton Deane BC
Conservative
3.45%
15
Luton BC
Labour
3.44%
16
Gedling BC
Labour
3.40%
17
Nottingham City Council
Labour
3.40%
18
Tunbridge Wells BC
Conservative
3.30%
19
Scarborough BC
NOC
3.00%
20
Surrey CC*
Conservative
2.99%
21
Cambridgeshire CC
Conservative
2.95%
22
East Cambridgeshire DC
Conservative
2.95%
23
Peterborough City Council
Conservative
2.95%
24
York City Council
Labour
2.90%
25
South Hams DC
Conservative
2.50%
26
West Devon BC
Conservative
2.50%
27
Chelmsford BC
Conservative
2.46%”
by InsiderOut
Tuesday, January 24 2012, 3:04PM
“The following Tory councils have just announced that they are rejecting their own government's council tax bribe and raising their council tax :- Peterborough City Council, Surrey CC, Chelmsford BC and East Cambridgeshire DC. So it is not just Labour councils that can see that this one year bribe is a not very enticing offer”
by Mailydail
Monday, January 23 2012, 10:28AM
“Typical of a Labour council. They only know how to do two things well. TAX AND SPEND.”
by teddywood1
Friday, January 20 2012, 7:50AM
“they could save a lot more by not putting gritter lorries out like last night I could not believe my eyes the forcast was rain and even more rain what a waste of our money paying for the salt and probably double time for the workers on the gritters and this morning it is all down the drain”
by lincolngrass
Friday, January 20 2012, 6:13AM
“Rip off Britain at its best!
I don't know how many SOT people are coping with these continual rises.
It can only mean that the standard of living for many must reduce and I do ask how much lower can it go?”
by Redpitlad
Thursday, January 19 2012, 7:17PM
“The smug look on Andy Lillys face says it all.
But as long as them who can't think for them selves...! you know the one's "the people out there with the ideology..! me dad voted labour like me granddad...! then you get what you voted for "INCOMPETENCE/INEPTITUDE/DYSFUNCTIONAL ADMINISTRATION ".
but hey its only money....! just that's its our money.”
by sloulou
Thursday, January 19 2012, 6:37PM
“My advice to anyone still living in Joke-On-Trent do as I did AND GET THE HELL OUT OF THERE”
by Dizzy1960
Thursday, January 19 2012, 4:16PM
“This Council are a law unto themselves, and the only way the people are going to get heard is with a united front and with this city being one of the highest unemployment area's, how many are actually bothered. Because history shows, "No-one makes a stand unless they're directly involved? Which counts out the majority of this city, and this is where the council can use, abuse and manipulate the people to benefit themselves.
Knowledge is power, and the lack of people's knowledge and desire to make a stand for their community's is holding this city back. Whilst allowing the manipulators to benefit themselves and others in their inner circle.
Apark@Stoke4LUZ
honi soit qui mal y pense”
by stokeace
Thursday, January 19 2012, 1:49PM
“its easy to hit the working population of this area...the city council are so out of touch with the residents of this city... it is staggering...dont they know that this is a low paid area?? that people are struggling to pay the council tax even at last years rate??..i will never vote labour again...at local OR national level...”
by cornwall11
Thursday, January 19 2012, 1:31PM
“If people keep voting like there parents did in the old days we are never going to alter this city.
Lets face it,the whole place is complete shambles dispite what councilers keeps telling us.The only councilor with his finger on the pulse is Dave Conway he is only one that talks common sense.”