Residents pay for Government cash squeeze

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Council attributes blame for forthcoming 4.9% rise in tax

A planned 4.9 per cent rise in council tax for the coming year is the direct consequence of the Government’s failure to ensure funding for local services keeps pace with rising costs.

From April the main Band D council tax in Wandsworth will be £372.28. The Mayor’s tax will go up by 5.3 per cent to £303.88 making a combined figure of £676.16.

Deputy council leader Maurice Heaster said the increase was unavoidable once the true scale of the Government’s cash squeeze became clear:

“This is not a one year problem. Many London councils expect the real value of the Government’s grant to fall even more sharply over the next three years as the Chancellor tries to rein in public spending.

“It is the same national funding crisis that sees PCTs trying to pass off health costs onto local authorities and, in Battersea, is driving the closure of Bolingbroke Hospital.

“Inflation is at its highest level for 15 years while in high demand areas like social care, costs are going by as much as 7 per cent a year. At the same time the grant which has to help pay for these and other equally vital services is falling further and further behind.

“Wandsworth has always kept a close watch on its spending. In most areas we are spending less than other boroughs while performing more strongly.

“Yesterday’s Audit Commission rankings confirmed that no other council delivers the same top class services for such an affordable council tax. We have been faced with some tough spending decisions in recent weeks. We have to be sure we have the long term funding to safeguard the essential services on which the most vulnerable members of our community depend.

“Today’s council tax rise is equally difficult. For the elderly and people on fixed incomes a low council tax is vital. By acting now to reduce spending in the future we stand the best chance of being able to keep our council tax bills among the very lowest in the country while continuing to offer excellent services for our residents.”

This year’s 2.7 per cent government grant increase is the lowest amount possible under the current rules. In twelve months time the council is budgeting for just a 1 per cent uplift although some London Boroughs are now forecasting a grant freeze. Every 1 per cent cut in the increase costs the council £1.4 m.

The Government has said that it expects council tax increases to be less than 5 per cent and that it will cap ‘excessive’ rises. This, combined with cuts in the real value of central grants, is forcing councils to reduce expenditure.

The council’s budget requirement for 2007/2008 will be set at £182.9 m.

The proposals for 2007/2008 will be considered first by the corporate resources overview and scrutiny committee on March 7 before being voted on by the full council on March 8.

The aggregate Band D figure of £676.16 compares to £643.41 in the current year and is the amount payable by two person households in the majority area of the borough. Band D residents liable for the levy of the Wimbledon and Putney Commons Conservators will pay a slightly higher inclusive figure of £698.56.

 

February 26, 2007