14% Increase Would Mean The End Of The Line For Leeds Labour And Council Tax (Leeds Liberal Democrats)

Leeds Liberal Democrats <info@leedslibdems.org.uk>

14% Increase Would Mean The End Of The Line For Leeds Labour And Council Tax

November 19, 2003 12:00 AM

Leeds Council Tax set to surge through the £1000 barrier

Councillor Mark Harris, Leader of the Opposition Liberal Democrat Group on Leeds City Council, has described todays Local Government Funding Settlement as yet another nail in the coffin of Council Tax, and a devastating blow for the ruling Labour Group on the Council.

Cllr Harris said "While the settlement, an increase of nearly £20 million looks generous, the Government has assumed that Leeds City Council will only be increasing its spending roughly in line with inflation. Indeed if the Council was planning to increase its expenditure in line with inflation (currently 2.7%) it could probably get away with keeping Council Tax at the same level as it is this year. But the Council isn't planning to keep its increase in spending at 2.7%, it's planning on increasing spending by 5%, and the entire difference will have to be raised from Council Tax. That could mean an increase of 14% in the Council Tax (currently £980.40 for Band D properties), before any increases for extra Policing are added on. This will take the Band D Bill to around £1,100.

"I doubt if even this Labour Group will have the gall to try and increase Council Tax by 14%+, that means they will have to make cuts in the medium term financial plan they approved only a week ago. The way those cuts are implemented will be critical - for years the Council has ignored our calls to cut out waste and unnecessary spending, it is now too late for the Council to make the necessary cuts in one budget without seriously affecting the services it provides. Now the people of Leeds will be faced with real cuts in services, rather than cuts in the waste and inefficiency the Labour Group has presided over more than twenty years."

Notes to Editors

1. The Government financial settlement for Leeds City Council announced this afternoon includes an increase of just under £20 million pounds in Grants [from £537 million in 2003/04 to £556 million in 2004/05]

2. The Council medium term financial plan, approved by the Labour members of the Council's Executive Board last Wednesday (12th Nov) proposed an increase in expenditure to £771 million in 2004/05 (indicative resource allocation) an increase of 5% or £34 million. To fund this fully from the indicated Government Grants announced today, along with Council Tax would require an additional £26 million to be raised from Council Tax, an increase of 14% on the amount raised last year [2003/04 Council Tax aimed to raise £189 million, the total figure required this year from Council Tax to fund spending of £771 million from Rate Support Grant, Business Rates and Council Tax would be £215 million].

3. All Gov't figures based on data published by the Office of the Deputy Prime Minister on their web-site.

4. All figures rounded to the nearest million.