Staffordshire authorities fear more cuts after tax freeze 'shortfall'
FREEZING local taxes for a third year as part of a Government incentive scheme could leave cash-strapped councils and emergency services hundreds of thousands of pounds worse off than they expected.
Communities Secretary Eric Pickles is again offering financial inducements to councils, police and fire services which agree to freeze tax.
-
FINANCIAL INCENTIVES: Communities Secretary Eric Pickles.
But the offer on the table for 2013/14 is equivalent to just a one per cent increase.
The Sentinel has learned that authorities in the region were budgeting for bigger tax increases from April than the Government is prepared to pay for. It means they face huge budgetary black holes on top of the ongoing spending cuts triggered by Government grant reductions.
Thinking of changing your job or looking to change career.
Contact BlueSky CVs and get a CV to get your noticed.
Terms: 1 CV per customer full payment prior to commencement of CV
Contact: 01538 710408
Valid until: Monday, May 27 2013
Staffordshire Fire and Rescue, which has accepted tax freeze grants for the last two years, had banked on a four per cent increase for 2013/14. It now faces a £700,000 shortfall.
Finance director David Greensmith said: “A three per cent reduction is £700,000 in real terms and that will be in addition to announcements on funding reductions.”
Staffordshire Police Authority said it was ‘cautious’ about budget forecasts but had banked on a two per cent increase after two successive years of freezing its 13 per cent portion of the council tax bill.
The force expects a £650,000 shortfall if it accepts the Government’s tax freeze incentive. Authorities are effectively being blocked from increases of more than two per cent under threat of having to win permission from residents with a referendum.
Similar incentives in the last two years were equivalent to a 2.5 per cent rise.
Labour-run Stoke-on-Trent City Council defied the Government to impose a 3.49 per cent tax increase this year, after leaders said they needed the extra cash to invest in economic growth. The authority said it is awaiting news on its Government funding settlement before deciding on council tax charges.
A spokesman said: “In these extremely challenging and uncertain times, the effect of the cap on the level of council tax increase has limited our flexibility and options.”
Tristram Hunt, below left, Labour MP for Stoke-on-Trent Central, said the one per cent freeze incentive did not go far enough. He added: “It’s another example of the Government hammering low income parts of the country.”
Conservative-run Staffordshire County Council, which receives £1,028.81 from the council tax bill for Band D properties, is an exception as it will be better off than expected. Leader Philip Atkins said: “We had already agreed to freeze tax for next year.”
City Independents councillor Dave Conway, leader of the opposition on Stoke-on-Trent City Council, said he has little sympathy with the prospect of the city’s funding shortfall.
He added: “This council wants to borrow £40 million to spend on a new civic centre – that is not responsible.”
Comments
by sausagelord
Tuesday, November 06 2012, 10:03PM
“"I'm not happy either with way this council is ripping us off, but I can't see things being any better under a Tory council."
You do realise there are more than two choices when you vote, right? A council doesn't have to be Labour or Tory. Just vote for the party or candidate that represent your interests, but make sure not to vote for these poisonous Labour representatives. To them the people of north Staffordshire are just tools to prop up their stupid schemes that would make Dick Dastardly proud!”
by johnboy2011
Tuesday, November 06 2012, 8:13PM
“I'm not happy either with way this council is ripping us off, but I can't see things being any better under a Tory council. So what do we do, we could make a stand I suppose and refuse to pay any increase in council tax next year, but could we rely on everyone standing together. It seems a no win situation.”
by batchacremike
Tuesday, November 06 2012, 7:39PM
“Why did Stoke put council tax up by 3.49%? Because if they put it up any higher they would have had to have a referendum which might I suggest they knew they would lose. If they had frozen tax then Eric Pickles' department would have given them 2.5%. So for an extra 0.99% they have forced the people of Stoke to fork out 3.49%. So much for the Labour Party looking after the working man, the biggest myth ever. Why else has every poor area had Labour Councils and Labour MPs since Adam was a lad? Keep em poor and they will vote Labour.”
by johnboy2011
Tuesday, November 06 2012, 2:47PM
“Hi Johntoe, according to Juzzah me and you both talk out our backsides, so maybe the BBC does as well, if that is true we'd better get some stronger toothpaste.”
by stokemaveric
Tuesday, November 06 2012, 2:30PM
“no tristram hunt it is YOU,the labour council who are hammering this paticular low paid area of the country..last year a 3.9% increase was imposed under the guise of ''to invest in economic growth''..well where is this ''economic growth''??? i have not seen 1 company invest in this area bringing hundreds of jobs and much needed ''economic growth''...so therefore seeing as the council has failed to produce the goods for which a 3.9% council tax increase was implemented are we entitled to a council tax rebate???..”
by PeterPotter
Tuesday, November 06 2012, 1:49PM
“Like kryptonite is to Superman, lack of taxes and no tax increases are to the Socialist Council ! These people just don't know what to do if their hands aren't deep in the pockets of the general public stealing every penny they can to spend spend spend on ridiculous schemes and more entitlements all in the name of improving life. Taking the public's own money and giving it back to others. Times like this really show how pathetic politicians really are !”
by Juzzah
Tuesday, November 06 2012, 1:07PM
“Johnboy & Johntoe, sometimes you really do talk out of your rears don't you? The government has over the past few years suggested freezing council tax and the government are.....TORIES!!! Our local council decide to ignore that advice and increase council tax so that they can have nice new offices in Hanley and our local council is.....LABOUR, who in this case are obviously helping the average working man!!!! WAKE UP GENTS!!!! It's time for you to stop taking everything labour tells you as being the gospel truth!!!”
by smithy1980
Tuesday, November 06 2012, 1:02PM
“Labour decide on the 15th year of above inflation council tax increases, to fund yet more waste within this incompetent council. How about they have a freeze and become more efficient and open at what they do whilst they are at it?
Whats that a No I hear? Of Course not thats not the Socialist way of Tax, Spend, Waste (New building).
What the hell does Tristram Hunt know about anything? let alone 'low income areas of the country'.
He is not short of a bob or two, if he is really such a good guy how about scrapping his expenses and second home and moving to his constituency!! He can probabaly afford to pay his own train fair on our wondeful public transport infastructure legacy (only 1hr 40 minutes to Euston) left by the previous Labour Government. Whats that I hear? The tickets are too expensive! Well every other sucker has to pay to get themselves to work, why not politicians? If I wanted to work and live during the week in London, I would have to buy my own second home! What gives?
All Politicians accross all 3 main parties are exactly the same full of tripe, if you belive otherwise you are mad.
BREAK THE HABIT OF A LIFETIME AND VOTE FOR SOMEONE ELSE.”
by sausagelord
Tuesday, November 06 2012, 12:54PM
“"Shock horror, Tories look after their own, at the expense of Labour controlled areas"
But Stoke decided to "go it alone" and not sign up to the council tax freeze, so I don't see how this is "at the expense of Labour controlled areas"? I'll tell you what really is at the expense of our area: the fact that any gains from Stoke's council tax hike will be spent on stupid brainwaves like moving the Civic Centre, rather than making public services better and encouraging investment.
The freezes affecting Staffs Police Authority and Staffs Fire & Rescue impact the blue areas of the county (Stafford & Newcastle) as much as the red bits (Stoke).”
by mainstar
Tuesday, November 06 2012, 12:43PM
“by Johntoe
Tuesday, November 06 2012, 12:16PM
"Shock horror, Tories look after their own, at the expense of Labour controlled areas,...................
again,"
And of course it dosnt happen the other way round does it.”