Extra Money Will still mean up to 9% Council Tax Rise
December 11, 2003 1:17 PM
Gov't offers Leeds an extra £4 million ….
Councillor Mark Harris, Leader of the Opposition Liberal Democrat Group on Leeds City Council, has described the news from the Office of the Deputy Prime Minister that Leeds will receive an extra £4 million in Rate Support Grant next year as welcome, but still not enough to avoid Council Tax in the City rising by up to 3 times the rate of inflation.
Cllr Harris said "The climbdown about the amount of money local councils should receive from Whitehall is welcome, but still is a long way short of the Cities needs. At yesterday's meeting of the Council's Executive Board I was told that if the Council is to spend the amount which central government recommends (our Formula Spending Share) Council Tax would have to rise by 12%. This extra money would mean it only has to rise by 9%. A welcome drop of 3% but still over three times the rate of inflation! By the time increases in Police and Fire Council Tax demands are added in it will be well over 10%!
"The Council will still be faced with tough choices on spending for next year if it wants to keep increases anywhere near the Governments hoped for figure of 5%. Until the Government adopt a fair system for local government funding, based on the ability to pay and not on house values, they will always face these problems, and the dissatisfaction of local people. We will continue to press for the adoption of a local income tax, which would meet the test of fairness, as a replacement for the Council Tax."
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