Zero council tax increase cannot go on for ever, council told
Thursday, 28th February 2013.
Council tax in Haverhill is set to remain the same as in previous years after the town council agreed this week to another freeze on its share.
But there was a warning from town clerk Will Austin that this cannot go on indefinitely and members need to be prepared to take 'difficult decisions' next year.
The standstill in the town council's precept for council tax has been chieved by the use of reserves, which were built up by an increase two years ago agreed to safeguard the Arts Centre.
At the time members were afraid St Edmundsbury Borough Council would axe its grant to the Arts Centre completely, so they raised the extra money in case.
As it happened that year, the borough did not axe its grant, waiting until the next year to do so,so a reserve of extra cash was built up, which it was agreed would either be used for necessary items in the town or returned to residents.
The latter has been the case through using the money to hold down council tax. But now new threats are on the horizon.
The Government's council tax support scheme has been re-calibrated and is now based on 6,924 homes in Haverhill rather than on 8,120 as previously.
This would result in a loss to the town council of £129,000 a year, from a budget of £900,000, which would have a significant impact.
It is cushioned by temporary compensation this year. Next year a degree of compensation will be given within the Rate Support Grant given to St Edmundsbury Borough Council and it will be up to the borough how much they pass on to the town council.
To cover the shortfall, an increase of £19 per head at band D level, or 27 per cent, would be required, members heard, although Mr Austin sdaid he doubted if the borough would fail to pass on any compensation at all.
Members would have to look seriously next year at savings or cuts and masy have to withdraw some community activities which are currently put on free for residents.
Cllr Gary Stroud said now was the time to approach local businesses to sponsor events.
"We don't want to lose what we provide for the people of Haverhill," he said.
Cllr Clive Turner said a zero increase paid for from reserves was not sustainable in the future.
"We need to find further ways of generating money," he said.
But there was a warning from town clerk Will Austin that this cannot go on indefinitely and members need to be prepared to take 'difficult decisions' next year.
The standstill in the town council's precept for council tax has been chieved by the use of reserves, which were built up by an increase two years ago agreed to safeguard the Arts Centre.
At the time members were afraid St Edmundsbury Borough Council would axe its grant to the Arts Centre completely, so they raised the extra money in case.
As it happened that year, the borough did not axe its grant, waiting until the next year to do so,so a reserve of extra cash was built up, which it was agreed would either be used for necessary items in the town or returned to residents.
The latter has been the case through using the money to hold down council tax. But now new threats are on the horizon.
The Government's council tax support scheme has been re-calibrated and is now based on 6,924 homes in Haverhill rather than on 8,120 as previously.
This would result in a loss to the town council of £129,000 a year, from a budget of £900,000, which would have a significant impact.
It is cushioned by temporary compensation this year. Next year a degree of compensation will be given within the Rate Support Grant given to St Edmundsbury Borough Council and it will be up to the borough how much they pass on to the town council.
To cover the shortfall, an increase of £19 per head at band D level, or 27 per cent, would be required, members heard, although Mr Austin sdaid he doubted if the borough would fail to pass on any compensation at all.
Members would have to look seriously next year at savings or cuts and masy have to withdraw some community activities which are currently put on free for residents.
Cllr Gary Stroud said now was the time to approach local businesses to sponsor events.
"We don't want to lose what we provide for the people of Haverhill," he said.
Cllr Clive Turner said a zero increase paid for from reserves was not sustainable in the future.
"We need to find further ways of generating money," he said.
Comment on this story
[board listing] [login] [register]
You must be logged in to post messages. (login now)