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Rochford District Council – Council Tax 2013

January 2, 2013 by  

Education Government Grants

There have been no public meetings so far so we cannot tell you what Rochford District Council is going to do about Council Tax for 2013.

 

 

However there are two main alternatives:

 

The Council might continue to accept a Grant from Central Government – no increase in Council Tax

Or

The Council might reject Grant from Central Government and increase Council Tax

There are, however, a number of pointers as to what may happen based on the intentions of a majority of Councils as published in the National Press.

Many Councils are set to reject the ‘freeze’ grant, increase Council Tax with probably further cuts to services , and/or price increases to some services

If ANY of this is of concern to you please email john.mason [at] bigfoot [dot] com or Christine.Mason [at] rochfordessex [dot] net and tell us why. This will help us represent you.

To explain this in further detail please read on.

Background

For the last two years the Government has provided a grant to local councils in order that there can be a District Council Tax Freeze.

This year this Government Grant reduces so that only a ‘Freeze’ representing 1% increase can be adopted by Rochford District Council. i.e., The existing Council Tax you currently pay plus the Grant = a 1% increase in income for RDC in 2013/2014 without any direct cost or increase to you.

So Rochford District Council could accept the ‘Freeze’ Grant and increase overall income by 1%

Or

Rochford District Council could forgo this Government Grant and reject the ‘Freeze’. In rejecting the Freeze the Council could increase Council Tax by up to 2% without having to hold a Local Referendum. (Any figure in excess of 2% would require a Local Referendum which in itself is a costly exercise and seems unlikely.)

So Rochford would not accept the 1% Government Grant and the whole increase up to 2% would be paid by residents. (It is likely that the increase will be slightly under 2% but certainly over 1% as if 1% was being considered you would expect the Government Grant to be taken up.)

Why would Rochford District Council consider this?

We all know about inflation because with your pay freezes this means that without a rise your pay does not go as far as it did. And if you get a rise one year then the next rise you get is a rise on a rise. With the last two years Council Tax Freezes the Council has lost out on rises on rises that it forecast for the next five years or so. Less money to spend in the future. Just like you. Unfortunately you won’t be getting a pay rise but the Council will if the Council Tax goes up by up to 2% and the Freeze Grant is rejected.

Wouldn’t this annoy the Conservative Government, (sorry the Coalition Government with the Liberal Democrats)?

Yes

(but we could not find the position of Nick Clegg on this) !

Here is some of what has been published in the National Press.

  • Pickles: Freeze council tax – Source: The Times, Page: 14

Eric Pickles [Secretary of State for DCLG, Conservative] is set to warn council leaders that they risk losing next May’s elections if they refuse to freeze council tax. His intervention comes after research found that over half of all local authorities are considering raising council tax next April. A survey of finance officers, carried out by the Local Government Chronicle, found that 55% of the 326 English councils were preparing to raise council tax. Brandon Lewis, the Local Government Minister comments: “When costs are rising elsewhere the public won’t tolerate unnecessary tax increases. In particular, councillors with elections in May can either show they are helping people with the cost of living, or face explaining on the doorsteps why they have snatched money away from hardworking families and pensioners”.

(Rochford District Council has no Elections this May)

  • Tax rises “morally wrong” – Source: The Daily Telegraph, Page: 1 The Guardian, Page: 34

The Daily Telegraph reports that Eric Pickles will today warn local authorities that it is “morally” unacceptable to increase council tax next year. More than half of councils are understood to be ready to raise the levy as the Government prepares to announce a slight reduction in their funding. Liverpool City Council said there would be “riots on the street” if council tax was frozen again, as it will lead to more cuts to services. While Birmingham City Council has also indicated that further restraint is not possible. The announcement is set to lead to a “war of words” between Mr Pickles and council chiefs. Meanwhile, Patrick Butler, in the Guardian, discusses how councils will react to the Government’s latest spending cuts. He says that many authorities will have to make cuts to previously protected areas, such as adult social care and children’s social services. He also notes that the late settlement will leave many struggling to stitch together a coherent budget by the end of January.

You might hear from District Councils that the increase is only pennies per week……….BUT this adds up to £’s

  • Families worse off – Source: Financial Times, Page: 3 The Times, Page: 43 The Daily Telegraph, Business, Page: 2, 4 The Guardian, Page: 31 The Scotsman, Page: 8

Asda’s Income Tracker has found that families were nearly £50 worse off last month than they were two years ago. Families had £146 a week of discretionary income last month, meaning they were £1 a week better off than a year ago but compared with November 2010, they are £12 a week worse off.

And

  • Elderly walking a financial tightrope – Source: Sunday Express

A study by Age UK has warned that more than 1.2m elderly people could be made bankrupt if they received an unexpected fuel or energy bill of more £200. Michelle Mitchell, the charity’s director general, said: “Many older people are living hand-to-mouth and dreading the day when the cooker breaks down or energy prices rise again.”

WHEREAS

  • Rural communities to feel the strain – Source: Manchester Evening News, Page: 4

Rural communities will bear the brunt of government cuts that will force local councils to slash their services. The warning follows the publication of the government’s finance settlement, which details the amount of central funding given to local authorities. Rural councils will face a bigger reduction in central grant and spending power than urban councils, according to an initial analysis by the Rural Services Network.

  •  Our Community – Source: As published by the local Liberal Democrats

According to the BBC, Rochford District Council is facing a cut of 2.5% in funding.

(http://onlinefocus.org/wp-content/uploads/2012/12/budget-cuts.jpg)

So residents of Rochford District might see a rejection of the ‘freeze’ grant, an increase in their personal fixed costs, further cuts to services and price increases for individual services.

We will let you know more about what is proposed for Rochford’s Council Tax 2013 when we are allowed to say but we felt that you ought to know the way the land seems to be lying and give you the chance to comment and make your views known to either us or your own Ward Councillors if you do not live in Hawkwell West.

If ANY of this is of concern to you please email john.mason [at] bigfoot [dot] com or Christine.Mason [at] rochfordessex [dot] net and tell us why. This will help us represent you.

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