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Babergh District Councillors have today (22nd February) backed recommendations for an inflation-only Council Tax increase in 2008/09.
From April 2008, the Babergh-part of local residents’ Council Tax bills will rise by 3.9% (based on September 2007’s inflation figure) to £131.16 per year for a Band D property. This means that Babergh retains its position for another year as the Suffolk council with the second-lowest Council Tax levels.
Cllr Nick Ridley, Strategy Committee Chairman, said: “This increase amounts to barely a penny more a day and is the result of the unstinting efforts of councillors and staff in identifying even more efficient ways of working and the careful financial management of our resources.
“That this is no one-off achievement is shown by the fact that the increase in Babergh’s Council Tax levels over the last five years is in line with inflation for that period. In addition, extra resources have been found to support Babergh’s service priorities including affordable housing, community projects and recycling.”
However, Cllr Ridley expressed deep concern about the hard choices facing even a prudent council such as Babergh.
“The grant we are likely to get from the Government for the next three years is around 2% per year,” he added.
“That, allied with the need to make even further efficiency savings and increased costs associated with Government schemes, such as the Concessionary Fares scheme, will make Babergh’s impressive track record ever harder to maintain in the future.
“Some particularly hard decisions may need to be made in the future.” ENDS
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Reporter: For the past five years, Babergh has managed to limit its Council Tax increase to the rate of inflation. The 3.9% increase for the coming year works out at little more than an extra penny a day for all of Babergh’s services which include waste collection and recycling, housing, planning and building control, sports and leisure facilities and environmental protection, making the total cost to Babergh council tax payers of £2.50 a week.
Babergh’s is the second lowest council tax in Suffolk and is in the lowest 20% nationally. As in the previous 5 years the rate has been kept down by half a million pounds worth of efficiency savings, increased income where possible and redirecting resources.
The news does come with a warning however, the twin achievements of improving priority services and keeping the council tax increase down will get harder and harder as the Government reduces grant increases and under funds key areas.
Councillor Nick Ridley, Chairman of the Strategy Committee on this year’s achievement:
Councillor Nick Ridley: Well our aims, as has been for the last 4 or 5 years that we should keep the council tax increases at around the rate of inflation. We take the 3.9% which was the September figure. Our other aim obviously is to deliver the other priorities the council has got to keep that tax at a low rate and to deliver the services that we deliver at the moment as efficiently as possible.
Our priorities have been quality homes that local people can afford, that means affordable housing of course, which is very much top of our tree; a greener Babergh in relation to the whole of Suffolk as well working towards greener Suffolk; a safer and healthier Babergh; stronger sustainable Babergh economy and we want vibrant places both in the towns and in our villages.
When you think that 3.9% provides you with waste, it provides you with planning, it provides you with environmental control, leisure facilities at £2.50 per week it really is a very cheap rate. Now we can only do that by identifying savings of between £500,000 and £700,000 each year but it is going to get increasingly difficult. Next year we are going to have to find 3% efficiencies for the Government against the 2½% it was before and the Government settlement is only 2% but we can’t go over 5% otherwise the Government will cap us. Things like concessionary fares which are much favoured and much appreciated by everybody, those are going to cost us potentially £200,000 extra next year and although the Government is giving subsidy at the moment that is probably likely to be withdrawn.
More information on council tax charges 2008/9.
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