Council on target for low tax increases

Archived press release

Date Published: 05/12/08

An average Band D property will pay £128.57 per year for council services

A council tax rise below inflation is being put forward by Aylesbury Vale District Council in its draft budget proposals for next year.

Cabinet members met on 2 December to agree a provisional budget which proposes to reduce the increase in the district council’s tax charge from four per cent this year to two per cent for 2009/10, well below the current rate of inflation.

The proposed rise of two per cent in the district’s council tax charge is an increase of £2.53 per year for an average Band D property, or some five pence per week.

This will take the district’s share of council tax for a Band D property to £128.57 per year. AVDC’s share of the bill is added to by the county council, parish and town councils and the police and fire authorities.

A two per cent council tax increase is being proposed despite another low government grant increase. It was announced this week that the council would receive an increase of just 1.1 per cent.

AVDC has identified a potential £1.7 million in efficiency savings for the next financial year, minimising wherever possible any impact on front-line services. Substantial savings will be made on salaries through a series of restructuring plans, retirements and not filling existing vacant posts.

This year’s budget process has been made even more difficult by the global credit crunch, which has created a £482,000 shortfall in expected revenue income. Two income sources hardest hit are fees for land searches and planning application fees.

In 2007/2008, income from land search fees was £748,000. This year the council is anticipating that it will only be £330,000 as a result of the downturn in the housing market.

In Development Control, the downturn in the housing market is having a similar effect. The number of planning applications being received (particularly for extensions to private dwellings) is down significantly on last year. As a result the income will be around £391,000 less than was anticipated this year.

Councillor Margaret Morgan-Owen, Cabinet Member for Resources, said: “In view of the economic downturn, and the financial pressures and employment threats that many of our residents are facing at this moment, I believe that we should aim this year for a two per cent increase in the council tax. Of course, lower increases have a direct impact on the money available for the provision of services, but we have to recognise that there is a trade-off between the level of services provided and the level of council tax increase that people can realistically afford. This means that we are going to be faced with some difficult choices when it comes to budget setting time next year.”

The budget proposals will be referred to the council’s scrutiny committees for consideration and the cabinet will meet to consider their comments and make its final recommendations on 13 January 2009. The 2009/10 budget will then be debated and set by full council on 4 February and come into force on 1 April 2009.