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Recession-beating council tax increase is lowest ever
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Recession-beating council tax increase is lowest ever - increased spending on key community services
Royal Borough residents look set to benefit from a 2009/10 council tax that is likely to be the lowest for any unitary authority in the country outside London. The proposed increase for 2009/10 is just 1.9% – the lowest ever in the borough and 0.5% below the current year’s increase which in itself was a record at 2.4%. Importantly for residents during the current recession, the increase is much less than the 5% Retail Price Inflation (RPI) rate in September 2008 – the rate at which all state benefits, including pensions, will be increased in April 2009. At the same time the council is maintaining its focus on the services it provides direct to the public, with proposed increased spending on many that are priorities for the local community. Cllr David Hilton, lead member for finance, said: “We recognise that as the recession bites many residents will be under financial pressure. The council must do all it can to help ease the burden – not only clamping down on a council tax increase but also maintaining and improving services that support residents and keep the borough on the move. “That’s why we have worked hard to keep the council tax increase to a minimum. In real terms, it means the average householder will pay around £50 less in council tax next year than they did in 2007 – great news for everyone but particularly for older people, those on fixed incomes or who rely on savings and our more vulnerable residents.” Cllr Hilton said that the council itself was not immune to the impact of the recession. He explained: “Our income from car parking and commercial property is likely to fall in the year ahead and the costs of housing people who sadly may become homeless will all add to the council’s financial problems. So, setting the budget for the year ahead has been more challenging than ever. “However, the council is well-placed to manage the impact of the recession. Through careful management of resources we have built up reserves and have been able to set aside £1.2m to manage the effect on the council’s finances.” As well as the low 1.9% council tax increase, the proposed new budget includes increased spending on: Cllr Hilton added: “Despite a low council tax increase in 2008/09, the past year has seen a number of high profile improvements to council services come to fruition, as we promised. We now have more community wardens than ever, better parking for many residents and improved planning enforcement. We also have an innovative strategy for tackling Windsor’s specific parking problems and, through working with other groups, an agreed vision and action plan for the regeneration of Maidenhead. “These improvements and initiatives demonstrate that you don’t need to raise council tax to the hilt to achieve quality services. Our aim for the years ahead is to continue to reduce the burden of council tax for our residents while maintaining and improving the level and quality of services that they want and deserve.” If the budget proposals get council go-ahead, the Royal Borough’s new Band D council tax rate for 2009/10 will be £1,037.21 – an increase of 1.9% (37p per week) over 2008/09 but £175 below the anticipated average Band D rate for unitary councils in England. The budget proposals will be discussed by the corporate services overview and scrutiny committee on Thursday 5 February before going to cabinet on Thursday 12 February and for final decision to full council on Tuesday 24 February. |
