Council tax rise of 4.25% agreed in 'difficult budget'

Published date: 02 February 2010 | Published by: Dominic Robertson


 

 

POWYS County Councillors have unanimously agreed a 4.25 per cent rise in council tax for the forthcoming year.

The measure was agreed at the January meeting of full council, with not a single councillor opposing the plan.

The increase will mean a rise of £36.25 for the average band D property, from £852.92 to £889.17.

Councillor Gwilym Vaughan, portfolio holder for finance said the background to the budget was one of the worst financial settlements in living memory from the Welsh Assembly Government and a forecast council deficit of £23 million by 2014.

He said: “This has been one of the most difficult budgets I can remember but despite that, we have managed to make massive investments in services.

“There’s a current deficit of £2.7 million in secondary schools and we have managed to put £1 million towards that. There is also £2.5 million investment in social care and £200,000 for street lighting.”

Cllr Vaughan said the financial position had been compounded by the decision to increase council tax by 3 per cent last year when most other authorities in Wales had decided on a 4.5 per cent hike.

Cllr Vaughan said that certain assumptions had been built into the budget, such as a rise for teachers salary of 2.3 percent.

Simon Baynes, leader of the conservative group, said that councillors should not be paralysed by fear of the council’s deficit.

He said: “I am going to take a different line to other members on the subject of deficits. They are only deficits if you cannot manage them. If you look at the finances of the council this year, eight months through we are in surplus - a £5.2 million underspend.”

Councillor David Jones, portfolio holder for education sought to have an amendment added to the budget that would initiate an urgent review of the entire of the council’s corporate services and travel expenses.

However, despite the request, the amendment was not added to the recommendation and Councillor Vaughan said it was a matter which could be brought before the board.
 

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