Thanet District Council is set to peg its Council Tax at the same level for a fourth consecutive year. This is despite suffering a further 7.4 per cent reduction in its annual formula grant from central government for 2013/14.
The latest government cut means that the formula grant will have fallen from £13.3m three years ago to just £8.5m from April this year. However, recently published official figures reveal that the grant will be reduced again for 2014/15 - to £7.1m - an overall drop of 47 per cent.
In spite of this, the council’s cabinet has put together a budget which will enable it to withdraw its earlier recommendation for a 2 per cent increase in Council Tax. This would have been equivalent to £4.20 extra per year for a Band D household.
Cabinet will make its formal recommendation when it meets on 22 January, with the final decision being taken by the full council on 7 February.
Cllr Rick Everitt, Cabinet Member for Finance, said: “When we considered the draft budget last November we needed to find almost £800,000 to balance the books for next year, and at that stage an increase in Council Tax looked unavoidable.
”We had also pencilled in a £580,000 contribution from the council’s New Homes Bonus reserve, although if possible we would have preferred to spend that money on one-off initiatives to improve Thanet for the benefit of residents and visitors.
“This was the prudent position for us to take, based on the information to hand at the time. However, given the continuing pressure on household finances we were very clear that we would continue to search for other ways to close the gap, including identifying additional back-office savings and finding other sources of funding. We have now been able to do this.
“Following this work and the 19 December announcement of the local government settlement, I am delighted to announce that we have fully closed the gap for this year. The settlement is slightly better for 2013/14 than anticipated but is, unfortunately, much worse for 2014/15.
“Cabinet is now able to recommend to council that there should be no Council Tax increase and no additional draw-down of the New Homes Bonus to fund our existing services in 2013/14.
“That’s the good news. However, the council’s financial position remains extremely tight. Our officers are fully stretched by their current workload and there is no escaping that there will still be some very difficult choices to be made in the years ahead.”
The council’s budget plan shows a net spend on services of £19.37m next year (this is after taking account of the income expected from fees, charges and miscellaneous grants), down from £20.38m in 2012/13, despite the effects of inflation and other cost pressures.
Thursday, 10 January 2013
16 comments:
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Central Government requires most councils to have zero tax increase.
ReplyDeleteFund cuts suggest TDC is seen as an incompetent council.
The funds wasted or stolen is incredible. And still no FOI on salaries.
Who's stolen?
DeleteTotal bollox 16:37
DeleteThe 0% salaries are stolen ie a 0% increase publicly stated/also to council presumably but an actual rise taken. That's theft.
DeleteManston monitoring is equally criminal: no monitoring done as required and fines not collected.
Funds wasted are even more straightforward eg EKO etc.
19:25 needs some detail for his bollox view if it's not considered bollox.
Charming as ever 16:13, negating whatever case you may have by your inability to present it without insulting others. Not only are you rude and obnoxious, but also a coward, hiding behind your anonymity safe in the knowledge that none of us can give you the smack in the kisser you so richly deserve.
DeleteTom, what on earth is insulting in 16:13's comments on 0% salaries and Manston? You're proving yourself far more rude and unpleasant claiming insults, of your own making, then proceeding to insult away yourself.
DeleteThis discussion is on the 0% salaries and Manston monitoring and TDC waste/tax eg EKO. Keep to the point, although we could certainly do with less from you and your increasingly irrelevant blog comments.
Your discussion is on 0% salaries and Manston, but the subject of this post is council tax rises. Thus it is you who should stick to the subject.
DeleteAs for insults, if you do not regard describing 19:25's opinion as a bollix rudeness, I do not know how else one would describe it. Since you also remain nameless I reiterate that you are also gutless.
Yes Tom, the discussion is on 0% fraud and Manston monitoring/fines, and council tax rises. At the risk of treating you like a twit, the first two lead to the latter.
DeleteWe could do with less of your foolish comments and nastiness. You could be directing some of your rudeness to 19:25 bollox rather than my higlighting of it, but that wouldn't fit with your petty insults over Manston and smack in the kisser bile.
Let's hope you were drummed out of the RAF or Police either for idiocy or nastiness.
My, my what a sad, sad sac you really are, 11.01, you almost have my sympathy.
DeleteI agree with Tom. Lower class people that say things like "Bollox" should be smacked. At least Jimmy Savile OBE never used a swear word in his life...
DeleteThere's no requirement on a Council to do anything with regard to tax, either to raise or cut it, though there is the incentive to retain it and claim the 1% raise equivalent from the Government. Until we see the full Budget documents, due next week ahead of the Cabinet meeting, its a bit difficult to judge anything but its quite something for Labour to change its mind so abruptly on this.
ReplyDeleteFair point James although a local tax increase to qualify for a national tax increase isn't the best reason/excuse for putting up tax.
DeleteSurely tax cuts should be incentivised? With FOI it would be fairly easy to review jobs/salaries against required/effective services?
With TDC the councillors simply have no idea of what the costs are. Or cover up the waste and fraud.
While the refusal of Westminster to bolster TDC looks like depriving a substandard council of funds to encourage reform?
Which councillors and civil servants should be delisted/sacked?
Yes, why don't you foxtrot oscar, 1700.
DeleteNice to see my request was respected and 1700 has done a crickey bird!
DeleteI agree with Tom. Lower class people that say things like "Bollox" should be smacked. At least Jimmy Savile OBE never used a swear word in his life...
ReplyDeleteBizarre!
Delete