Rows over the new Northumberland unitary authority

Feb 11 2009 by William Green, The Journal

Repayments to be spread over years

NORTHUMBERLAND County Council will spread its multi-million pound redundancy payments to get its new budget through.

Government ministers have given the green light to the move – which will mean the new authority can introduce a flat rate of council tax for everyone in the county in its first year.

The financial cushion will also mean controversial proposals to slash spending on roads maintenance and double home care charges for elderly and disabled people this year have now been scaled down by the Liberal Democrat administration at County Hall.

Changes have been made by the minority group after the Department for Communities and Local Government agreed that the new unitary authority can capitalise up to £15m of its £18.5m redundancy costs.

This means the cost can be spread over a number of years instead of having to be paid up front, resulting in the new council now having more scope to avoid painful service cuts and rises in charges in its first year.

Yesterday Coun Andrew Tebbutt, executive member for corporate services, said: "We set out with a budget we didn’t want to do and we said it was too tough. The DCLG has responded and given us the opportunity to tackle priorities and ease things slightly.

"It has listened to what we say is the uniqueness of Northumberland’s problems. We have also done exactly what we said we would do; listened to the people and addressed issued they have raised."

The changes to the budget plans include reversing a £6m cut in capital spending on roads and putting £650,000 back into the highways revenue budget.

The maximum weekly charge for home care will now rise from £60 to £90 in April, rather than the £120 previously proposed.

It could rise to £150 in 2011/12, although this will be subject to further discussions as part of medium-term budget planning.

Equalising council tax in the first year will mean a 4.8% increase in Blyth Valley – which pays the lowest bills at present – and an average rise of 3.8% in other areas of the county to bring them all into line.

Coun Tebbutt said modern apprenticeships were now planned by the authority – a move suggested by the Labour group – and confirmed that the future of the Valley Care service for elderly people in Blyth Valley is guaranteed.

The revised package – together with alternative budget plans from the Conservative and Labour groups – will be discussed by the full council today.

Yesterday Conservative group leader, Peter Jackson, welcomed some of the changes, especially the equalisation of council tax bills.

"We were scathing about the attempt to cut the budget for the maintenance of our crumbling roads and also, at this time of hardship, we think it is particularly unfortunate that the council should attempt to double the home and day care charges for the elderly.

"We seem to be edging closer but there is still quite a lot in the budget proposals that we find unsatisfactory."