Cabinet proposes lowest council tax increase for a decade

Archived press release

Date Published: 16/01/09

A council tax increase of two per cent is proposed

Aylesbury Vale District Council’s cabinet has recommended the district’s lowest council tax increase for 10 years.

At a meeting of the cabinet on 13 January, councillors approved a budget for 2009/10 that will see a council tax increase of two per cent. This means people living in a Band D property will pay £128.57 this year for district council services, an increase of £2.53 or some five pence per week.

The recommendation, which runs below the current rate of inflation, will ease the burden on residents affected by the economic downturn.

The district council faces some tough decisions this year as a result of the credit crunch and world wide recession – with reduced income in many areas, lower interest on investments, and rising energy and fuel costs.

In response, the cabinet’s proposed budget for the next financial year includes £1.7 million in efficiency savings, 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.

Despite making these efficiency savings, further savings still need to be found to balance the books. As a result, it will not be possible for the council to continue to provide all the services that it has done in the past.

The cabinet is recommending that the current pest control service be discontinued, on condition that a portion of the savings generated is used to provide a free service to residents on mean-tested benefits.

Cabinet members are also proposing to remove the council tax discount for homes empty for more than six months. This means that those people currently receiving a discount of 50 per cent, because the property has been unoccupied and unfurnished for more than six months, would have to pay the full council tax charge from 1 April 2009.

The measure has been recommended to support efforts to encourage owners to bring empty homes back into use, and generate more income to support front-line services.

However, a proposal to cut council funding to the Aylesbury Vale Arts Council and Aylesbury Vale Joint Sports Council will not be pursued at this time.

The cabinet is proposing to retain the grants to both the Arts and Sports Councils for the next financial year. These organisations will be encouraged to use the opportunity given by this extension to investigate alternative and additional sources of funding.

Councillor Margaret Morgan-Owen, Cabinet Member for Resources, said: “Every year balancing the council budget is a challenge due to rising costs, decreasing government grant and new requirements, for instance the free bus pass scheme for the over 60s and disabled. This year the challenges are even greater because of the credit crunch and global economic downturn.

“We need about £86 million a year to run the council. About £11.7 million comes from the government in the form of general support, the remaining amount comes from council tax, specific grants, income from investments – which are getting poorer returns because of the credit crunch – and fees and charges, which are also reducing.

“Despite these challenges, we have delivered a prudent and responsible budget that keeps the average council rise to just two per cent – the lowest increase for 10 years. We recognise that council tax bills are a major element of any household budget and are committed to delivering efficiency savings and changes to the way we work to ensure value for money for residents.”

Formal adoption of the budget will take place at the full council meeting on 4 February.