Tax-freeze gift planned
Jan 28 2008 by Dave Black, The Journal
THOUSANDS of families in part of Northumberland could be given a special farewell gift by their local authority – a zero increase in its share of their council tax bills.
Labour leaders of Wansbeck District Council, which will disappear next year under the switch to unitary local government in the county, are planning the goodwill gesture when they set their last-ever budget in a few weeks time.
They want to raid the authority’s healthy £4m balances and use the funds to freeze the district council’s share of tax bills at its current level for the 2008/9 financial year.
The move would mean local people paying not a penny more than they do now for the services they receive from the council, such as refuse collection, street cleaning, concessionary travel and planning.
Spending estimates suggest a Wansbeck Council tax increase of about 2.3% from April – but council leader John Devon is calling on his Labour colleagues and political opponents to go even further and veto any rise in bills.
He wants to avoid any increase by using more than £250,000 from the authority’s reserves, which have been built up to more than £4m in recent years through prudent financial housekeeping.
The move would mean Wansbeck bucking the national trend, with the Local Government Association predicting an average 4% rise in council tax bills in April.
With Northumberland County Council aiming for a 1.8% to 2% increase, it could mean householders in Wansbeck paying very little more than they do now in 2008/9. Over the past five years Wansbeck’s share of council tax costs has increased by just 2.36%.
Yesterday Coun Devon said: “I am asking councillor colleagues from all parties for their opinions on my suggestion to utilise £267,500 from balances in order to meet a predicted below-inflation rise in the cost of Wansbeck’s share of council tax bills.
“That will still leave us in a very healthy financial position as we go into our last year before being merged into the new Northumberland unitary council, but will also ensure that our residents don’t have to pay a penny more for the services Wansbeck Council provides for them.”
He is seeking comments from his fellow councillors in time to take a report to the cabinet in February on his proposals, which he hopes would then be ratified by the full council in March.
In 2004, the average Band D household payment for Wansbeck’s share of the council tax was £159 a year
This year, if money is not taken from balances to fund the required 2.3% rise, that would still mean householders paying just £15.31 more than they were four years ago.
